Page 32 - MONECO Financial Training Catalogue

INTEREST RATE PRODUCTS WORKSHOP: FROM BONDS THROUGH SWAPS TO INTEREST RATE OPTIONS
DATES: November 9 – 10, 2026 • 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 products that trade within it, and how they are used by traders, investors and
companies.
and discounting methods
• The scope and structure of 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
the 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
management as well as covering the technical details around pricing and risk management. We then
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.
technical details On day two we move on to the details of pricing and risk management of interest rate
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
• Interest rate options and course finishes with a look at interest rate structured products, examining some of the
popular client applications investor favourites and asking what makes them so appealing.
• The interest rate volatility Who should attend?
surface and pricing • Bank traders, salespeople, structurers
approaches for interest • Bank market risk managers, middle office and operations professionals
rate options • Investors – institutional investors, fund managers, private traders
• Company treasury managers and staff, accountants, risk managers
• Interest rate exotics and
structured products, and Course methodology
how they are used by The course consists of classroom-based training which combines formal teaching
traders and investors of concepts and technical content, with individual and group exercises to reinforce
learning points.

MONDAY, NOVEMBER 9 − 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
00
15
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 10
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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