DUBLIN BUSINESS SCHOOL
Seminars in Dublin
Professor Ian Giddy
Stern School of Business
New York University
Managing Corporate
Exposure
•. What is Corporate Treasury Exposure?
m . Financial
and operating risks
m . Interest
rate, currency, commodity and equity price risks
m . Symmetric
vs assymetric
m . Accounting
vs economic
•. Active versus Passive Managment of Financial
Risk
m . Should
firms manage exchange risk?
m . Should
treasury be allowed to take specualtive positions?
m . Basic
principles of the why, when and how of financial risk management
•. Exposure and Market Efficiency
m . The
Fisher effect
m . Forward
interest rates and the expectations theory
m . Purchasing
power parity
m . The
international Fisher effect
m . Unbiased
forward exchange rates?
•. Exposure to Interest Rate Risk
m . Risk
of loss on a debt or asset
m . Risk
of loss on a transaction
m . Economic
exposure
m . Assymetric
exposure
•. Liquidity Management
m . Is
cash king?
m . Centralization
vs devolution
m . Access
to money markets
m . The
cost of assured access
•. Counterparty Risk Manangement
m . Measuring
counterparty risk
m . Setting
limits
m . Netting,
collateral, marking to market and other risk reduction strategies
•. Corporate Controls over Treasury Risk Management
m . Management's
understanding of financial risks
m . Establishing
sensible policies
m . Setting
sensible limits
m . The
limitations of limits
m . The
"dollars at risk" approach
•. Tools and Techniques for the Management
of Interest Rate Risk
m . Maturity
mismatch
m . Forward
commitments
m . FRAs
m . Futures
m . Swaps
m . Caps
and other options
m . When
to use Debt, Futures, FRAs, Swaps and Options
•. The Uses of Options in Interest Rate Risk
Management
m . What
options offer
m . Understanding
volatility
m . Caps.
collars and swaptions
m . "Free"
and cheap options
m . Exotic
options, including Asian options, compound options, as you like it options,
barrier options, Lookback options and quantos
•. What is Economic Exposure?
m . Translation
exposure
m . Transactions
exposure
m . Economic
exposure
•. Guidelines for Corporate Forecasting of
Exchange Rates
m . What
is the firm's exposure?
m . What
is the firm's risk tolerance?
m . Fixed
vs floating currencies
m . EMS-type
linkages
m . Forward
rate biased?
m . Role
of exchange or credit controls
•. Identifying Economic Exposure
m . Exposure
in a simple transaction
m . Accounting
exposure: current/noncurrent, monetary/nonmonetary, temporal, all current
methods
m . Critique
of the accounting model of exposure
m . Contractual
vs noncontractual returns
m . Currency
of denomination vs currency of determination
m . Operational
aspects of exchange risk
•. Managing Economic Exposure
m . Economic
effects of unanticipated exchange rate changes on cash flows
m . Financial
vs operating strategies for hedging
m . Steps
in managing economic exposure
•. Tools and Techniques for the Management
of Currency Risk
m . Forwards
m . Futures
m . Debt
m . Currency
Options
•. A Corporate Foreign Exchange Exposure Roadmap
Corporate Financing
Techniques
Day 1 Alternative Financing Techniques
1. What is The Right Financing Mix?
2. Private Placements vs Public Issues
3. Commercial Paper, Note Issuance Facilities
and Medium Term Notes
4. Equity-Linked Eurobonds
• Eurobonds with warrants
• Convertible Eurobonds
• Index-linked Eurobonds
5. Evaluating Bonds with Option Features:
An Issuer's Viewpoint
6. How to use Swap Financing and Hybrid
Bonds
7. Case Study
Day 2 Asset Securitization
1. Can a Company Save Money by Linking
Liabilities to Certain Assets?
2. What is the Technique for Creating
Asset-Backed Securities?
3. How Mortgage-Backed Securities Work
4. How are the Investors Protected?
5. Overcollateralization versus Split
Cash Flows
6. How Credit-Card Backed Securities Work
7. Conclusion: When is it a Useful Technique?
8. Case Study
Managing Financial
Risk
Day 1
08:30 Registration
09:00 Introduction
09:15 Financial Market Risk--Corporate
Exposure to Interest Rate Risk and Currency Fluctuations
10:30 Coffee Break
10:45 Instruments for Managing Interest
Rate Risk: Futures, FRAs, Swaps and Caps
12:30 Lunch
14:00 When to Use Debt, Futures, FRAs,
Swaps and Options
15:30 Coffee Break
15:45 The Use of Swaps in Financing and
Risk Management
17:15 Adjourn
Day 2
09:00 Option Pricing and Applications,
Including Caps, Floors, Collars and Swaptions
10:30 Coffee Break
10:45 Corporate Control of Trading Activities
12:30 Lunch
14:00 Currency Risk: Tools and Techniques
15:30 Coffee Break
15:45 Currency Risk: A Corporate Viewpoint
17:15 Adjourn
HYBRID INSTRUMENTS
OF THE INTERNATIONAL CAPITAL MARKET
Presented by
Professor Ian Giddy
The Stern School of Business, New York University
| 9:00 am - 10:30 am |
Introduction
Principles of Hybrid Instruments--Bundling and Unbundling
Sources of Financial Innovation--Market Imperfections
Case: A Day in the Life of the Eurobond Market |
| 10:30 am - 11:00 am |
Break |
| 11:00 am - 12:15 pm |
Options and Callable Bonds
Exercise: How to Evaluate the Yield on a Callable Bond |
| 1:30 pm - 3:00 pm |
Dissecting Hybrid Instruments: Applications
of the Principles |
| 3:00 pm - 3:30 pm |
Break |
| 3:30 pm - 5:15 pm |
Exercise: Digging Under Tombstones |
|
Ian H. Giddy, Professor of Finance
New York University • Stern School of Business
44 West 4th Street, New York 10012
Tel 212 998-0332 • Fax 212 995-4233
|
Go to Giddy's
Web Portal • Contact Ian Giddy at ian.giddy@nyu.edu