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.

No sessions currently available. Contact client services to get the next available date.
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 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process, and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.