Page 14 - MONECO Financial Training Catalogue

INTEREST RATE PRUDUCTS WORDSHOP FROM BONDS THROUGH SWAPS TO INTEREST RATE OPTIONS
DATES: November 24 – 25, 2025 • PRICES: € 1,400 In-class, € 1,050 Online • LOCATION: Prague and Online
Attend this 2-day training course and learn about:

• The nature of interest, This 2-day course offers a detailed analysis of the interest rate market, the
interest rate calculations and products that trade within it, and how they are used by traders, investors and
companies.
discounting methods
• The scope and structure of the On day one, we start with the basics of interest rates – how are they quoted, how are
the levels set and what drives movements in rates? We then look at the marketplace for
bond market debt products focussing on the details of the money and bond markets. The course will
• Bond pricing and risk help participants understand how companies, banks and investors use these markets
as well as covering the technical details around pricing and risk management. We then
management moved our focus to interest rate derivative products. This section begins with a look at
• Interest rate derivative the linear derivative products: futures and swaps. We cover the intuitive understanding
products - concepts and of these products and the client applications.
On day two we move on to the details of pricing and risk management of interest rate
technical details swaps and also introduce tenor basis and cross currency swaps. We then move onto
• Managing interest rate risk option products, including a look at exotic derivatives. The main option use cases will
using interest rate swaps be covered, and participations will be introduced to option pricing and option risk. The
course finishes with a look at interest rate structured products, examining some of the
• Interest rate options and investor favourites and asking what makes them so appealing.
popular client applications
• The interest rate volatility Who should attend?
surface and pricing approaches • Bank traders, salespeople, structurers
• Bank market risk managers, middle office and operations professionals
for interest rate options • Investors – institutional investors, fund managers, private traders
• Interest rate exotics and • Company treasury managers and staff, accountants, risk managers
structured products, and how Course methodology
they are used by traders and The course consists of classroom-based training which combines formal teaching
investors of concepts and technical content, with individual and group exercises to reinforce
learning points.

MONDAY, NOVEMBER 24 − Debt versus equity − the corporate Exercises:
09 – 09 10 financing choice • Bond pricing
00
Welcome and Introduction − Issuing debt instruments − the role • Repo calculations and forward bond
10
09 –12 15 of the Debt Capital Markets division pricing
Interest Rates in a bank
• What is interest? − Who participates in the debt Interest Rate Derivatives
− What is interest compensation for? markets and what is their • From cash markets to derivatives − what
− How to determine interest rates motivation? changes?
from risk-free to high-risk • Borrowing short-term debt − the • The concept of a forward interest rate
• Benchmark rates Money Markets − Why do we need forward rates? Who
− The use of central bank ‘risk-free’ − Understanding the conventions and uses them?
rates pricing of money market instruments − How might we develop a pricing
− IBOR benchmarks and future 15 15 approach for forward rates?
reference rates 12 −13 • Interest rate futures
− How do central banks control the Lunch Break − Product description, pricing and
15
00
interest rate environment? 13 −17 trading
• Interest rate maths Debt Markets (cont.) • Interest rate swaps
− Calculating interest cash flows • Borrowing long-term debt − Bonds − Mechanics of the swap product
− What conventions does each − How do bonds differ from money − OIS swaps and the RFR interest
currency use? market products?
calculation
− Dealing with simple and compound − Introduction to coupon, price and − Popular client applications of interest
interest yield − the way we measure bonds
• Using interest rates to present value − The relationship between price and rate swaps
future cash flows yield − Settlement and clearing in swap
− Which rate do we choose and why − How to we measure the risk of a trading
does it matter? bond investment?
• Financing using bonds − the Repo TUESDAY, NOVEMBER 25
Exercises: market 09 −12 15
00
• Interest rate calculations − Using Repos to fund a bond Interest Rate Derivatives (cont.)
• Discounting and the choice of investment • Interest rate swap pricing and risk
discount rate − Borrowing bonds using Repos − Intuitive swap valuation
• Creating a yield curve − Pricing swaps correctly
Debt Markets − How do we define a yield curve? − Understanding swap risk and
• The role of debt − What governs its shape and what comparisons to bond risk
− Why and how do companies and are the consequences of difference − Constructing a swaps delta ladder to
governments borrow money? shapes? manage risk
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