FIMCIR/2013-14/26 September 5th, 2013 To All FIMMDA Members/ Non Members Dear Sir / Madam, Training Program Hedging tools for Interest rate risk 17.10.2013 18.10.2013 FIMMDA in co-ordination with Dun & Bradstreet Information Services (India) Pvt. Ltd. is conducting a two-day training program on Hedging tools for Interest rate risk on October 17 th October 18 th, 2013. In his inaugural speech Governor of central bank has indicated launching of interest rate risk and that RBI will steadily but surely liberalize our markets. All assets and liabilities are prone to interest rate risk and the training program gives an idea of the risks involved and the products to address the same. The brief details of the program are as under: Program title : Hedging tools for Interest rate risk Course handled by : Faculty from D&B Total Course Fee : Members : Rs. 17000 + 12.36% (service tax) Rs 2101=Rs 19,101 : Non Members : Rs. 18000 + 12.36% (service tax) Rs 2225=Rs 20,225 Period : October 17 th October 18 th 2013. Timing : 10.00 am to 5.00 pm including lunch break Course Coordinator: Meghan Petkar
Venue : Astoria Hotel, First Floor (ZEST) Churchgate Reclamation, Jamshedji Tata Road, Mumbai-400 020 Ph no: 66541234/22871211 A tentative time - table (Annexure I) of the course is enclosed for your perusal. IMPORTANT CONDITIONS: The registrations will be confirmed only on receipt of the payment along with the registration form. Registration forms unaccompanied by physical cheques will be considered under Waiting list. Confirmation will be done on first come first serve basis subject to receipt of payment and availability of seats at the time of receipt of cheque. Please send your registration forms by mail/fax, mentioning number of candidates you are sponsoring. Due to logistic reasons, we can take only 25 trainees on a first come first served basis. Contact Details: Phone No. : 022 2201 7089 / 91 / 94 E-mail Id : meghan@fimmda.org Fax No. : 022 2201 7095 Yours faithfully, D.V.S.S.V Prasad Dy. Chief Executive Officer Encls: Registration Form
REGISTRATION FORM (17 th & 18 th October, 2013) TRAINING PROGRAMME Hedging tools for Interest rate risk Organization: Office Address: Telephone Number: ------------------ Fax Number: ---------------------- Name Details of the Participant Participant 1 Participant 2 Participant 3 Designation Department Mobile Number E-mail ID AUTHORISED SIGNATORY: Date: UTR NO: Offline Cheque /Demand Draft in Favor of FIMMDA Online Account No 30782076282 Name of Bank & Address IFSC CODE State Bank of India International Post Box No. 11 179, 16, Maharshi Karve Road,. SBIN0001821 Date:
Annexure I (Program Schedule for Hedging tools for Interest rate risk) NOTE Invoice for the training is available on the FIMMDA website under the head TRAINING. Nominating Institutions can put their participant s information in the standardized invoice. The invoice is computer generated, hence no signature is needed. (Annexure 1) Hedging tools for Interest rate risk Course Structure (Duration 2 days) Interest rate risk management Use of Derivatives Evolution and growth Risk and Uncertainty in Interest rate Policy rates and market interest rates Short-term and long-term interest rates Understanding benchmark interest rates Macro economic factors impacting interest rate Relationship among interest rate, inflation and exchange rate Asset Liability management and interest rates Understanding the interest rate derivative products and their utility Forward Rate Agreements (FRAs) Why are they entered into? Benchmark FRAs in Indian markets
Structuring an FRA Trading in FRA Factors affecting valuation of FRA Valuation of FRA Understanding hedging with FRA Overview of RBI guidelines Example : Participants need to value a FRA sometime after it has been entered into. For this, relevant data will be provided to them. Interest Rate Swaps (IRS) Why are they entered into? Structuring interest rate swaps to lower borrowing costs Case let : Participants will be given a Caselet which will have two borrowers with different credit ratings. They are expected to structure an Interest Rate Swap. Factors affecting valuation of Interest Rate Swaps Understanding Swap Curve Valuation of Interest Rate Swap Overview of RBI regulations Example : Participants need to value an interest rate swap sometime after it has been entered into. For this, relevant data will be provided to them. Repo Concept of Repo and eligible instruments Types of Repo Use of Repo Cash flow of Repo transaction M-T-M in Repo transaction Regulatory overview Data example to understand the product Interest Rate Futures (IRF) Concept and terminologies Underlying products
Cost of Carry and Cheapest to deliver bonds Arbitrage opportunity in IRF Trading, clearing and settlement of IRF IRF hedging and risk management Overview of RBI guidelines Case let /example IRF trades at NSE Overnight index swaps (OIS) Concept and need Determination of OIS rate Benefits Operational mechanism of OIS OIS and risk management Overview of regulations Case let/ Example
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