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
 
12:15 pm - 1:30 pm Lunch
 
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