Fixed Income Markets & OTC Derivatives Products

2 days 20-21 Jul 2017, Hong Kong Hong Kong $3,350.00 Download brochure Add to basket

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A 2-day training course looking into fixed income instruments and non-option interest rate derivatives products.  Participants will gain a practical understanding of how interest rate and cross currency swaps are used, priced and traded, and be made aware of current trends. A focus of this course will be the link between interest rate derivatives and the fixed income markets.

Risk management methodologies for interest rate derivatives products used by investment banks will also be explored.  Discussions will be had as to how the classical approach to pricing has been challenged during and following the crisis. The new approach adopted by banks and clearing houses will be covered. The programme will remain practical and will present best market practices.

Credit derivatives are increasingly used to manage, take and trade credit risk.  Specifically, credit default swaps (CDS) will be examined, and links will be made between the value of a CDS contract and the price of credit risk in the bond (underlying) markets.

Who should attend

  • All those newly involved in fixed income, DCM and interest rates derivatives sales & trading
  • All those with Middle/Back office, Compliance and Risk Management functions related to fixed income and interest rate derivatives


We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

Hong Kong
Goliath Lau

The Course Director has over 13 years of trading experience in the financial derivatives industry.  After a brief period as an officer in the back office, he became a bond and interest rate derivatives trader at HSBC Hong Kong in 1995.
He joined JPMorgan Chase as a derivatives trader in 2000. In 2003 he moved to the exotic derivatives desk within the bank, where he traded and structured exotic products in Asian local currencies. In 2007, he joined Bear Stearns Asia as a managing director to set up the exotic business in Asian currencies.
Since 2010 the Course Director has designed and delivered a wide range of financial markets and risk management training courses to investment banks (both supporting and front office staff), corporates, financial institutions, investment funds and financial market regulators.
The Course Director has an MSc in Finance from the City University of Hong Kong and a degree in Business Administration from the University of Bath in the UK.



Hong Kong

4-5 Star Hotel in Hong Kong

All of our courses are held in 4 – 5 star hotels, chosen for their location, facilities and level of service. You can be assured of a comfortable, convenient learning environment throughout the duration of the course.

Due to the variation in delegate numbers, we will send confirmation of the venue to you approximately 2 weeks before the start of the course. Course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

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Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:

Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.


We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:

Read more about our offering or complete a call back request to speak to a learning specialist.



Day 1

Fixed Income Markets
  • Categorisations of bonds
  • Intuitive price-yield relationship
     - Integrating credit risk in the equation
     - Evidencing different benchmark curves: government bond curves and swap curves
  • Credit spreads and what information they reveal in reality
  • Bond trading strategies and the need for repo markets

Interest Rate Swaps (IRS)

  • Calculation of forward interest rates; building block of all interest rate derivative products
     - Interpreting a forward curve
     - Understanding where value is derived from
  • Mechanics of an IRS
     - Trading conventions and the underlying cashflows
  • Intuitive understanding of marking-to-market a swap
  • Applications of IRS
     - Hedging for a bond issuer
     - Asset swaps

OTC Clearing

  • Overview on regulations
     - Capital requirement to support OTC derivatives trading
  • Counterparty credit risk management of IRS
     - Collateralisation management under the ISDA Credit Support Annex
     - Trading through central clearing parties

Day 2

Interest Rate Swaps Pricing & Risk Management

  • Swaps pricing and curves construction
     - Traditional boot-strapping
     - Incorporating tenor basis for different Libor tenors
     - Post-crisis market practice: OIS discounting and the rationale behind
     - Market instruments required to build a valuation curve
  • Market risk management of IRS
     - PV01
  • Common trading strategies of IRS
     - Directional trading
     - Yield curve trading; steepeners and flatteners utilising the PV01 concept
     - Basis trading vs government bonds or corporate bonds

Cross Currency Swaps (CCS)

  • Mechanics of a CCS
     - Trading conventions and the underlying cashflows
     - Counterparty credit risk profile of a CCS
  • Applications of CCS
     - Issuing debt in foreign bond markets
     - Using CCS to enhance Libor yield of a foreign bond investment
  • Currency basis and its drivers

Credit Derivatives

  • Transaction examples and key vocabulary of a credit default swap (CDS)
     - Defining credit events
  • Applications of CDS and the different market players
  • CDS implied market ratings vs ratings given by credit rating agencies
  • Managing the credit risk of corporate bonds using CDS
     - Hedging individual issues
     - Macro hedging using CDS indices
Why us

We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product