Derivatives & Structured Products: Mastering Advanced Financial Instruments

Introduction

Derivatives and Structured Products equips professionals with the expertise to navigate the complex world of advanced financial instruments. This course focuses on understanding the mechanics of derivatives, analyzing structured product designs, and managing associated risks. Participants will learn to price options, model complex payoffs, and implement hedging strategies. By mastering derivatives and structured products, professionals can enhance portfolio performance, manage risk effectively, and create innovative financial solutions.

The increasing sophistication of financial markets demands a robust understanding of derivatives and structured products to effectively manage risk and generate returns. This course delves into the intricacies of options pricing models, interest rate derivatives, and credit derivatives, empowering participants to develop and implement complex financial strategies. By integrating theoretical knowledge with practical applications, this program enables individuals to build advanced financial models and contribute to the innovation of financial markets.

Target Audience:

• Traders
• Financial analysts
• Risk managers
• Investment bankers
• Portfolio managers
• Quantitative analysts
• Structurers
• Hedge fund managers
• Students of financial engineering and quantitative finance
• Individuals interested in derivatives and structured products
• Actuaries
• Regulatory compliance officers
• Corporate treasurers

Course Objectives:

• Understand the principles and importance of derivatives and structured products.
• Implement techniques for pricing and valuing options and other derivatives.
• Understand the role of interest rate derivatives and their applications.
• Implement techniques for analyzing and managing interest rate risk using derivatives.
• Understand the principles of credit derivatives and their use in credit risk management.
• Implement techniques for valuing and managing credit derivatives.
• Understand the role of structured products in creating customized financial solutions.
• Implement techniques for designing and analyzing structured products.
• Understand the legal and regulatory frameworks surrounding derivatives and structured products.
• Implement techniques for ensuring compliance with derivatives and structured product regulations.
• Understand the role of risk management and hedging strategies in derivatives and structured products.
• Understand the challenges and opportunities of integrating derivatives and structured products into investment portfolios.
• Develop strategies for implementing and scaling up derivatives and structured product applications.

DURATION

10 Days

COURSE CONTENT

Module 1: Foundations of Derivatives and Structured Products

• Principles and importance of derivatives and structured products.
• Understanding the evolution of derivatives markets and structured finance.
• Benefits of advanced financial instruments in risk management and investment.
• Historical context and emerging trends in derivatives and structured products.

Module 2: Option Pricing and Valuation

• Techniques for pricing and valuing options and other derivatives.
• Implementing Black-Scholes model and binomial option pricing.
• Utilizing volatility modeling and implied volatility analysis.
• Managing option pricing and valuation techniques.

Module 3: Interest Rate Derivatives

• Understanding the role of interest rate derivatives and their applications.
• Implementing interest rate swaps, futures, and options.
• Utilizing yield curve analysis and modeling.
• Managing interest rate risk with derivatives.

Module 4: Interest Rate Risk Management

• Techniques for analyzing and managing interest rate risk using derivatives.
• Implementing hedging strategies with interest rate swaps and futures.
• Utilizing duration and convexity analysis.
• Managing interest rate risk reporting and monitoring.

Module 5: Credit Derivatives

• Understanding the principles of credit derivatives and their use in credit risk management.
• Implementing credit default swaps (CDS) and credit linked notes.
• Utilizing credit spread analysis and modeling.
• Managing credit risk with derivatives.

Module 6: Credit Derivative Valuation and Management

• Techniques for valuing and managing credit derivatives.
• Implementing credit risk modeling and scenario analysis.
• Utilizing credit derivative valuation models.
• Managing credit derivative risk and reporting.

Module 7: Structured Product Design

• Understanding the role of structured products in creating customized financial solutions.
• Implementing structured product design and payoff modeling.
• Utilizing equity-linked notes and structured deposits.
• Managing structured product development.

Module 8: Structured Product Analysis

• Techniques for designing and analyzing structured products.
• Implementing risk and return analysis of structured products.
• Utilizing structured product valuation and modeling.
• Managing structured product documentation and reporting.

Module 9: Legal and Regulatory Frameworks

• Understanding legal and regulatory frameworks for derivatives and structured products.
• Implementing compliance with derivatives regulations and reporting requirements.
• Utilizing regulatory guidelines and best practices.
• Managing legal and regulatory risks.

Module 10: Derivatives and Structured Product Regulatory Compliance

• Techniques for ensuring compliance with derivatives and structured product regulations.
• Implementing regulatory reporting and disclosure requirements.
• Utilizing compliance platforms and tools.
• Managing regulatory audits and examinations.

Module 11: Risk Management and Hedging Strategies

• Understanding the role of risk management in derivatives and structured products.
• Implementing hedging strategies with derivatives.
• Utilizing risk metrics and indicators.
• Managing derivatives and structured product risk.

Module 12: Derivatives and Structured Product Portfolio Integration

• Understanding the challenges and opportunities of integrating derivatives and structured products.
• Implementing portfolio construction and risk management strategies.
• Utilizing derivatives and structured products for yield enhancement.
• Managing portfolio performance and risk.

Module 13: Derivatives and Structured Product Initiative Scaling

• Techniques for developing derivatives and structured product project roadmaps.
• Implementing pilot project testing and evaluation.
• Utilizing scalability and performance optimization techniques.
• Managing derivatives and structured product team and governance.

Module 14: Case Studies: Derivatives and Structured Product Applications

• Analyzing real-world examples of successful derivatives and structured product applications.
• Highlighting best practices and innovative solutions.
• Documenting project outcomes and impact.
• Industry and financial engineering leader testimonials.

Module 15: The Future of Derivatives and Structured Products

• Exploring emerging derivatives and structured product technologies and trends.
• Integrating AI and machine learning for advanced pricing and risk management.
• Adapting to evolving market conditions and regulatory landscapes.
• Building resilient and innovative derivatives and structured product ecosystems.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre. We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org  Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 5 working days before commencement of the training.