Derivative instruments - The essentials

This module can serve either as an overview of the derivatives landscape for participants who are not directly involved with derivatives, or as an introductory first step for others before progressing to the subsequent modules.

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. Let's demystify these!

In close collaboration with PwC's subject matter experts, PwC Academy has developed a comprehensive, multi-layered training curriculum for junior and more experienced financial industries’ employees and managers alike, who seek to gain a solid knowledge of derivative instruments.

With the 'Derivative instruments - The essentials' module, participants will get a primary introduction to the derivative's world.

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

• understand derivative instruments concept;
• gain a sound understanding of underlying financial instruments such as interest rates, bonds, currencies, and stock indexes, and their roles in the financial markets;
• learn about the main features of derivative contracts, both listed and over-the-counter (OTC) and how they are used for hedging and speculative trading;
• obtain foundational knowledge on derivatives market and investors' strategies, with a focus on futures, forwards, swaps and credit derivatives.

• Some useful insights about underlying instruments such as interest rates, bonds, currencies and stock indexes;
• Main features of a derivative contract, listed or OTC;
• Forward contracts and the role of the yield curve;
• Futures contracts, specific features of the trading on an exchange;
• The use of forwards and of futures contracts for hedging and for speculative trading purpose;
• Swap contracts (IRS, CRS) and swap rates market; importance of the ISDA contract;
• Options: main features, in-the-money (ITM), out-of-the-money (OTM), at-the-money (ATM) options, volatility, basic option strategies, use of options vs use of forwards/futures;
• Credit derivatives: how to define and measure credit risk? The CDS market.

This training is coordinated by Samir Moussaoui, Partner at PwC Luxembourg.

• Samir Moussaoui is a partner within the Valuation Services (VS) team, specialising in traditional and alternative investment funds with a focus on private business valuations and modeling. He possesses extensive expertise in valuation processes, techniques, market practices, and auditing skills. Samir leads the VS practice in managing diverse financial valuation engagements for local and international clients and PwC offices. He is a Chartered Financial Analyst (CFA) and Chartered Valuation Surveyor (MRICS), serves on the board of the Luxembourg Valuation Professionals Association, and actively contributes as a training instructor and member of PwC’s Transformation group.