Our Vision | Print |

 

DNA Training & Consulting is a premier provider of product development, executive education and related services to some of the world’s leading financial institutions and companies.  We assist clients in the implementation of key strategic objectives in the areas of derivatives, risk management, structured finance/securitization, corporate finance/valuation and asset liability management.  We work with clients in one of four principal ways:

 

  1. Assisting clients with new product development;
  2. Providing advice to borrowers and investors in the evaluation of proposals from investment banks for debt and equity fundraising in the international capital markets or for investment in structured products;
  3. Delivering training seminars on current topics of interest to our clients’ in-house staff as well as their customers; and
  4. Assisting clients with the production of research, promotional articles, training manuals and other literature for distribution to customers or publication in the financial media.

 

New Product Development

We have proven extremely successful at assisting customers in the development of new derivative and structured product solutions for their businesses.  We specialize in technology transfer across different product disciplines and geographical boundaries. 

Examples:

 

red

We were recently hired by the convertibles desk of a leading financial institution to develop trading strategies that incorporate credit derivative technology into traditional hybrid instruments.  Much of the value we brought to our client stemmed from our extensive knowledge of bankruptcy law and the ranking of competing claims in the issuer’s capital structure.  One especially successful strategy centered on the exploitation of an inconsistency between the bankruptcy codes of two European jurisdictions.

 

red

We act as advisers to the emerging markets desk of an international bank seeking to develop a variety of tax optimization strategies for their clients.  Our role here is to distill the most successful techniques emanating from the US, UK and other established jurisdictions and to determine their replicability in developing markets.  We do this in parallel with an examination of the local accounting, regulatory and legal principles, and the obstacles these present to successful implementation.^

 

Advisory Services

 

red

We are currently advising a Middle Eastern sovereign in the examination of competing fundraising proposals from their capital providers in the United States and Europe.  The proposals include straight debt, exchangeables, securitization and privatization strategies.  Our role focuses on estimating the chances of successful completion at the indicated price range for each offer, and evaluating the potential for an investment grade rating for the securitization proposal.  We assist our client by reviewing the written terms of each proposal to ascertain the likelihood of a favorable rating (and the impact of the transaction on the issuer’s existing rating) and, in relevant instances, interviewing the deal team from the investment bank to gauge their credibility, product expertise and familiarity with local market factors.

 

red

We advise a number of emerging market investors on the valuation of complex investment products in the fixed income, structured note and hybrids arenas.  These include senior and mezzanine tranches of CBOs, repackagings of emerging market paper, and structured notes that incorporate views based on credit and equity correlations.

 

Our Training Seminars


Our seminars span a broad range of intermediate and advanced topics and are constantly updated to incorporate landmark transactions, regulatory announcements and other important market developments.  Detailed descriptions of the objectives, content, length, teaching methods and target audience for each of our seminars can be found by clicking here.

We are especially noted for our ability to remain fully updated on all major developments relevant to a product area and to incorporate them promptly into our teaching materials. 

Examples:

 

red

A 3-day seminar on Credit Derivatives, delivered in June 2002 to the Italian branch of a leading French bank, included a comprehensive evaluation of all Italian and French cash and synthetic CLO transactions completed to date, based on a thorough review of each transaction’s offering circular and rating agency presale reports.  The seminar also featured a discussion of regulatory capital guidelines implemented in the two countries only six weeks prior to the seminar date; examination of legal disputes stemming from the Enron and Argentina defaults; and a detailed review of the User Draft for the new 2002 Credit Derivatives Definitions.

 

red

A seminar on Asset Securitization delivered to a Turkish bank included not only an examination of successful transactions from that country but also ones that had triggered an early amortization following the Turkish devaluation of February 2001, and those that had defaulted in Mexico, Argentina and Indonesia.  The seminar also contained a full update on the proposed SPV consolidation rules that had been published by the FASB only a few days earlier.

 

Production of Client Literature

 

 

red

DNA Training & Consulting was hired by Citigroup/Salomon Smith Barney to assist in the preparation of a Supplement on Credit Derivatives that appeared in the June 2001 edition of Risk magazine.  The well-received publication, in which we co-authored four of the seven chapters, was distributed to clients worldwide and continues to be used for promotional purposes and for customer and in-house education.

 

red

We are currently helping a client develop on-line training materials on treasury products, FX options, equity derivatives, credit derivatives, market risk management and tax structuring.  These interactive materials will be available for in-house staff for downloading from their desk terminals and will in future be made available to customers attending conferences sponsored by the client.