Capital Markets & Derivatives Training specialise in developing and delivering
bespoke in-house training courses and programmes. This sample course outlines the
content and structure of a typical course.
Money Markets Instruments
This section explains the relationship between the value of money today and the value of money
(cash flows) in the future
- Money Markets Instruments
- types of instruments: T-Bills; CD's; CP; BA's
- discount versus interest bearing securities
- short-dated bonds
- who issues and why?
- establishing a CP programme
- fixed income derivatives: the bond futures contract
- Calculating the net present value of a series of cash flows
- discount factors and discount functions
- Calculating interest
- simple versus compound interest
- nominal versus effective rates
- day count conventions
- annuities
- interpolation and extrapolation of rates
- Working out a spot FX rate
- how a cross rate is determined
- calculating a forward fx rate
Pricing Money Market Instruments
This section reviews the different interest rate instruments and how they are priced and valued
using the simple techniques described earlier on.
- Cash deposits, T-bills, bills of exchange, CD's, CP
- FRA's, STIR futures
- Bonds
- Swaps
- Applying PV and FV techniques to calculate swaps, bonds and STIR Futures
- using discount factors and discount functions
- boot strapping techniques for working out NPV
This section provides an explanation of the different types of repos that can be traded, and how
they are priced and settled on a bilateral or tri-party basis.
- Market development and history - GMRA
- Definition of repo types and legal agreement
- Classic repo/sell buy back/collateral lending
- Cross currency repos
- Comparison of repo types
- Quoting a repo price
- Hold in custody
- General collateral v special
- Haircuts and types of margin settlement
- Bilateral and tri-party settlement
- Clearing House margining arrangements
