Understanding structured derivatives for accountants - Workshop 2017

The sessions aim to cover the prevailing fixed income market instrument sold by investment banks to institutional clients or professional investors. The sessions will also be supplemented by real case study (a HK-listed company) for practical application.

Key topics covered:

Session 1: Foreign Exchange Derivatives (7 Jun)

• An overview of FX & Forward product structure
• Insight of different type of derivative risk
• Valuation of Forward Contract
• FX Options Basics
• Warning Signal : Embedded Loans and Wrong Way Trades

Session 2: Swap Derivatives (14 Jun)

• Understanding different types of swap : Plain Vanilla vs Structured Transaction
• What are the Cashflow underlying?
• How are Swaps are used (include IRS & CCS)?
• Swap Valuation and Pricing
• Common non-standard swap and their risk driver

Trainer profile:

D Tang has over 20 years of experience in risk management and product risk analysis at various leading US and European investment and corporate banks. His product coverage ranges from trade finance to syndicated loans, derivatives and structured products, and leveraged financing for corporate (SME and corporate) banks, financial institutions and funds in Greater China and SE Asia region. Mr. Tang is also experienced in providing both internal and external training to various investment and corporate banks, government supervisory bodies, and various professional institutes.

Learning objectives

• Understand different types of FX and fixed income derivatives products prevailing in the market and the key risk drivers underlying the contracted transactions
• Quantify the risk(s) in consistent approach and to reverse engineer some complex derivatives transactions
• Identify common red flags of HK-listed companies (especially those Chinese POE) in engaging structured derivatives transactions
• Identify the wrong way trades and their early warning signals

Audience

This workshop is specially designed for finance professionals, relationship managers and investors who want to know the risk(s) underlying fixed income derivatives, especially those structured and exotic derivatives commonly traded by the renowned investment banks in Asia.