Derivative instruments - Module 3 - Swaps

Intra-company training

Who is the training for?

Anyone who wants to reach a sound understanding of the financial derivative instruments used by investment managers.

Level reached

Intermediate

Duration

2,00 hours(s)

Language(s) of service

EN FR

Goals

Whoever has watched "The Wolf of Wall Street" has likely struggled to understand the jobs, products, jargon that surround financial markets. Some of us are still trying to get our way out of this financial jungle and clarify the associated strategies. Demystifying financial instruments is the key objective of the step-by-step programme we propose below.

This training curriculum is designed around 5 complementary building blocks:

  • Derivative instruments – Module 1 - The essentials
  • Derivative instruments – Module 2 - Forwards and futures
  • Derivative instruments – Module 3 - Swaps
  • Derivative instruments – Module 4 - Options
  • Derivative instruments – Module 5 - Credit derivatives

Our modular approach allows each participant to select his/her entry point in the programme to best fit cumulated knowledge and experience on this wide topic.

By the end of this course, participants will be able to:

  • define the general characteristics of swaps;
  • gain an in-depth understanding of how swaps operate;
  • list how swaps can best be used on the market: be it in isolation or in combination with other instruments;
  • understand the valuation method and what can impact swaps' quotation;
  • identify major risks associated and determine controls that may mitigate them.

Contents

  • The fundamentals of an IRS swap contract: asset or liability swap, main contract features
  • Main swap uses; unwinding of a swap; swap risks
  • The swap market and yield curve
  • The case of a CRS
  • Swaps variants: CMS swaps, 0-coupon swap
  • Other types of swaps: volatility or variance swaps, inflation swaps, commodity swaps, performance swaps, dividend swaps

The content of the session is illustrated by real, market examples. It is given in an attractive, understandable way, avoiding mathematical developments

Additional information

This training will be coordinated by Frédéric Botteman, Partner at PwC Luxembourg.

The different modules will be animated by experts in derivatives.

Frédéric, Audit Partner, is specialised in the valuation of derivatives and illiquid securities. Thanks to this, he has gained a high expertise in the audit of guaranteed funds. He is also leading several SRI reporting for major IM players.

Frédéric is instructor in several courses linked to derivative instruments.

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