Derivatives and Financial Statements

Do you have a fundamental understanding of derivatives? Need to know more about derivatives and the meaning of corporate footnotes? The use of actual examples, case studies, and explanations will be provided to demystify the numbers and explain the applications of these various strategies and financial instruments.

11-Jun-2012 -- 11-Jun-2012StamfordUSD$1575
NY Institute of Finance - Stamford, CT9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Jack Foster; ] Mon Level: Basic

CPE CREDITS
7.0
Analysts and associates, bankers (corporate and investment), IT and operations personnel, sales and sales support.
No advance preparation required.
Derivatives Review
  • Options
  • Futures/forwards
  • Swaps
Here we will briefly review the products which make up the derivatives marketplace.

Features benefit of each product
  • Liquidity
  • Margin
  • Leverage
  • Role of the exchange (futures), vs OTC transactions (forwards)
Each product has its own strengths and weaknesses. This section will review the products from the point of view of user applications.

Use in hedging risks vs. speculation

  • Interest rate risk
  • Currency risk
  • Business risk
  • Equity market risk
  • Commodity price risk

Assessing hedge effectiveness

    Pricing/fair value and mark to market

Size and scope of the marketplace
  • Size of the marketplace
  • Growth
  • Participants/players

Managing risk from the client as well as the dealer perspective

Case studies:
  • Goodyear
As an issuer of debt, and a user of derivatives, we will review the financial statements of Goodyear to illustrate the use of these instruments to hedge risk

  • JPMorganChase
As a major dealer in derivatives, we will review the managing of risks and other issues related to their role as a dealer in derivatives.

Current issues
  • Role of ISDA
  • Impact of Basel 2 on derivatives
  • Impace of Sarbanes-Oxley
  • Liquidity issues as it pertains to hedge fund participation in this market
  • Documentation

Clients who register for this course will receive a complimentary 4-month subscription to FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. The move to the electronic version follows an ongoing review of our environmental responsibilities as a global business and as part of the Pearson group. FT.com also has features that are not available in hard copy, such as: Special Reports, Alphaville, editor blogs, education sections and much more! Subscriptions will start within 6-8 weeks of the start of class and are limited to one subscription per client. (Please note: as of May 1, 2011, the electronic subscription replaces the hard-copy 3-month Financial Times subscription.)

Lunch is included for all students taking day classes.