SEMINAR LENGTH
4 days
SUBJECT FOCUS/CONTENT
A review of new financial engineering techniques used around the world
- Creative use of forwards, swaps and options to solve customer problems
- Innovative debt and equity structures, hybrid securities, and securities with embedded derivatives, including tax-deductible preferred, money-market preferred, “PERCS” and other convertible instruments
- Brady bonds and their progeny: structure and pricing. Repackaging of Brady instruments to suit investor preferences, including stripping and leveraging transactions.
- Tax structuring applications, including transactions for eliminating/mitigating taxable income, converting it from ordinary to capital and shifting it across time zones or across geographies.
- Advanced derivatives concepts and capital markets applications, how the funding and risk management markets are coming together
- Non-standard and evolving derivative products in illiquid markets; introduction to inflation derivatives, insurance derivatives, weather derivatives, sovereign risk derivatives and credit derivatives
- A framework for analyzing and reverse engineering financial innovation developed by the competition or in other capital markets
- Opportunities for financial innovation in the region: what the issuers need and what the investors prefer.
TARGET AUDIENCE
- Marketing officers and product managers from capital markets, treasury, exposure management and corporate finance departments
- Traders and treasury personnel interested in client applications for financial engineering products
PARTICIPANT OBJECTIVES
This program is intended to enhance the analytical and structuring skills of participants rather than their selling and marketing skills. By the end of this program, participants will be able to
- Review the latest financial engineering technology from markets around the world in order to assess which ideas have potential applications in their region
- Apply derivative concepts and capital markets products in creative ways to help clients reduce taxes, leverage off regulations, improve accounting treatment, and segment and arbitrage markets
- Identify key success factors in heavily-structured financial instruments and enhance their ability to estimate the demand for a new product idea early in the development stage
- Create innovative debt and equity structures, hybrid securities, structured notes and securities with embedded derivatives to accomplish the objectives of securities issuers and investors
METHODOLOGY
Lectures, presentations, discussions, and case studies.