Corporate and Commercial Banking
This program provides participants with an overview of how the corporate and commercial banker can provide interest rate and FX hedging solutions to their clients in a responsible risk-controlled manner with a particular emphasis on:
- Interest Rate and FX Exposures: Identification of the client’s exposure to movements in interest rates and FX rates and how such movements can adversely affect the cash flows of the company
- Interest Rate and FX Options: An examination of how the options family in general, and caps, floors, and collars in particular are used to help manage interest rate and FX risk
- Futures, Forwards, and Swaps: A review of the building blocks of interest rate and FX swaps and how these provide a low-cost alternative to hedging interest rate and FX risk
- Off-Market Hedging Alternatives: A review of hybrid solutions such as basis swaps, swaptions, forward starting swaps, and variable rate swaps enable the client to develop low cost alternatives to more conventional plain vanilla solutions
- Credit and Market Risk Exposures in Derivatives: An examination of how credit risk and market risk arise in derivatives products and how these risks are managed internally by the bank
- ISDA Documentation: An in-depth review of the ISDA agreement, how this agreement helps manage the risks in derivatives for the bank, and how banks customize such agreements to conform to their risk management objectives
Using practical examples and a series of exercises and cases, participants will review both market practices in how derivatives are used by corporate and commercial banking clients today.
The program will also highlight the profitability of such instruments from the bank’s perspective, and how such financial tools can be responsibly used to manage the risk of a client’s business from both the client and the bank’s perspective.