- Corporate Finance & Investment, Credit & Debt Capital Market
- 37 (Registered)
-
Level
- Intermediate
Accreditation
- 5 SIDC CPE points
- 4 FIMM CPD points
ICF Competency Type / Title / Level
- Foundational – Regulatory / Capital Market Products / Level 3
Learning Outcome
- Review financial derivatives
- Apply derivative for corporate hedging
- Apply credit derivative to hedge a bond position
Course Synopsis
This is an intermediate course to explore how corporate can use financial derivatives to hedge against Foreign Exchange and Interest Rate risks.
Course Content
-
Introduction
-
Hedging Foreign Exchange Exposure
-
Hedging Interest Rate Exposure
- Interest rate risk
- Hedging short term interest rate risk
- Hedging long term interest rate risk
- Relationship between bond prices and interest rates
- Effect of interest rate risk on bond yields
- Bond prices changes by maturity
- Yield curve
- Interest rate swaps
- Hedging interest rate shift using interest rate swaps
- Quiz
-
Summative Assessment