OVERALL OBJECTIVE: To explain and explore the fixed interest or bond market.
Aspects such as the local nuances, bond market math, the jargon as well as some of the
more popular strategies will be discussed and explained.
1. INTRODUCTION TO THE BOND MARKET:
Overall objective: To introduce the concept of fixed interest securities.
At the end of the section, the delegates will be able to:
• Describe a fixed interest security
• Describe a number of different types of “fixed” interest securities such as
vanilla bonds, zero coupon bonds and floating rate bonds.
• Describe the method of trading bonds within the South African market.
2. BOND PRICING AND RETURN MEASUREMENTS:
Overall objective: To explain the bond pricing formula and the various investment return
measures utilized by the various market participants.
At the end of the section, the delegates will be able to:
• Correctly calculate the price a vanilla bond using the bond pricing formula
• Correctly describe what the terms “clean price”, “accrued interest” and “dirty
or all in price” mean.
• Explain the difference between the “yield to maturity” and the “running or flat
yield”.
• Bond carries or repos.
• Correctly calculate the price of a zero coupon bond
3. RISKS ASSOCIATED WITH THE BOND MARKET:
Overall objective: To make the delegates aware of the risks inherent in investing in the
bond market and, having been made aware of these risks, how to manage them.
At the end of the section, the delegates will be able to:
• Describe the various risks associated with fixed interest securities such as:
interest rate risk, reinvestment risk, credit risk, liquidity risk, currency risk
event risk and political risk.
• Describe the strategies that, where possible, could be implemented to
manage these risks.
4. DURATION AND CONVEXITY:
Overall objective: To explain the movements of the price of a bond due to the volatility
of interest rates.
At the end of the section, the delegates will be able to:
• Correctly calculate the duration of a bond and describe the meaning of this
measurement.
• Correctly calculate the convexity of a bond and describe the meaning of this
measurement.
• Explain how these 2 measurements are used in practice, particularly in
portfolio management.
5. BASIC STRATEGIES:
Overall objective: To explain how to trade bonds in different interest rate scenarios.
At the end of the section, the delegates will be able to:
• Describe the various yield curve shapes and what these shapes indicate
about future interest rates.
• Describe and implement various trading strategies such as straddles,
arbitrage using the futures market and switches

Description: A two-day course that is designed to equip attendees with a basic understanding of technical and fundamental analysis with the ability to successfully apply learned techniques. The course is designed to establish an understanding of and basic proficiency in market analysis techniques.
Goal: On completion of the technical analysis module attendees should be able to successfully evaluate technical reports and charts, as well as be able to affect some primary analyses. The methodology is a structured approach that is process driven and ensures a larger degree of consistent success over time.
The fundamental analysis module gives a conceptual overview and covers the important components necessary to perform fundamental analysis. Attendees will be able to use the content as a knowledge base to better understand and evaluate analysis reports. Further self-study and advanced courses can ensure proficiency in this field.
Course Outline:
Day 1: The theory and building blocks of technical analysis
A thorough study of the relevant techniques
used in technical forecasting is a prerequisite for the effective application thereof. The conceptual methodology of technical analysis will be compared to fundamental analysis as in introduction to both the wide application and potential of this type of research.
The following subjects will be covered:
1. Basic tenets and comparison to fundamental analysis
2. Human behaviour- why technical analysis is effective
3. Building blocks of technical analysis and how to apply them in successful combinations
• Chart types
• The concept of trend
• Support, resistance and trend lines
• Different moving averages
• Oscillators
• Chart formations and patterns
Advanced analysis techniques are only explained in principle (forms part of the advanced course)
• Calculating target levels (Fibonacci and formation guidelines)
• Elliott Wave Theory- the basics
• Japanese Candlestick formations
Technical analysis is coupled with a risk diversifying trading and Investing disciplines to enhance risk adjusted returns over time.
• Trading discipline and human behaviour
• Investment portfolio risk structuring basics
Day 2: Fundamental analysis principles
• Top down vs. Bottom up analysis
• Factors affecting company sustainability and profitability
• Profit drivers
• Ratio analysis as a result of financial statement research
Practical application of techniques in a workshop format – Given time constraints.
• Workshop analyses of historic and current charts. Attendees work individually and in small groups to apply basic theoretical knowledge and experience the potential of the various analysis techniques. Exercises and real-world examples are used and designed to enforce the concept of correctly combining analyses methodologies. Practical experience acquired should enforce a strong understanding and potentially successful application of the subject matter.
Why this workshop?
Successful analysis is a skill that is accomplished over time through knowledge expansion and continual practical application. This two-day course is designed to introduce a solid theoretical knowledge base, as well as instil some practical application abilities. It is in contrast to other courses in this field that promises instant success by only providing a few pointers on the subject.
Full Value’s Approach:
• The structured approach provides an excellent theoretical and practical foundation to enhance analysis capabilities over time.
• Technical and fundamental analyses are explained as complementary and confirming forecasting techniques. A variety of application fields are outlined and practised.
• The course is designed and presented by a market practitioner with over 30 years of practical and relevant experience that provides attendees with a unique
Who should attend?
• Junior financial market professionals that require practical knowledge application
• Individual investors and traders
• IT support and developers
• Middle and back office treasury staff
• Private and personal bankers
• Financial advisors and wealth management cons

Background:

The main objective of this workshop is to explain the workings, nuances and jargon of the various sectors of the markets to new graduates, new entrants into the markets as well as to support staff who deal with market practitioners but who are not financial market practitioners themselves.

Details of the Program:

Section 1: Introduction

This section covers aspects such as:

• Over the Counter (OTC) versus Exchange Traded markets
• Primary and Secondary Markets
• Market participants

Section 2: The Money Market

• The Money Market Defined
• Factors influencing interest rates in South Africa
• Characteristics of the Money Market
• Nominal Vs Effective Interest Rates
• Different Money Market Instruments

Section 3: Foreign Exchange

• The Foreign Exchange Market Defined
• Exchange Rates
• Converting from one currency to another
• Explanation of forward rates
• Explanation of cross rates

Section 4: The Bond or Debt Capital Market

• The Debt Capital Market Defined
• Participants in the Debt Capital Market
• Characteristics of Debt Capital Market Instruments
• S A   Nuances
• Bond markets jargon

Section 5: The Derivatives Market

• The Differences between Cash (Spot) Markets and Derivatives Markets
• Who uses Derivatives and why?
• Forward Vs Option Contracts
• Over-the Counter contracts (OTC) Vs Exchange-Traded Contracts
• FRA’S
• Brief overview of:
• forward rates agreements(FRAs)
• Interest rates swaps(IRS)
• Options
• futures
• Ordinary Shares
• Preference shares
• Exchange traded funds
• Indices
• How to read a share page in a newspaper

Format:

This is a “hands on” practical program and therefore the delegates will be expected to get involved in the course content. Discussion and debate on the subject matter is therefore strongly encouraged. The program is presented in a face to face workshop format.

Who Should Attend?

New entrants into the financial services industry, whether they be front-, middle-, or back office personnel. Support staff including IT, internal audit, legal, accounting, compliance, personal assistants etc.

Duration of Workshop:

The program will be completed over a period of 3 full days.

 Our course directors are market practitioners. The course director for this workshop will be

Mike Sandler. Mike has 18 years dealing experience as well as being a qualified senior school teacher. He has written (and passed!) the exam himself so that he is not “training in a vacuum” but will be training and discussing what he has experienced in the exam. Delegates are essentially coached on how to write and pass the exam.

Full Value Training have conducted extensive training for this exam in various centers in Europe and Africa. The success rate is excellent with a pass rate in excess of the current international median of 60%. Our clients have included dealing and operational personnel from inter alia Barclays, Standard Bank, Nedbank, Investec, RMB, SARB, Bank of Taiwan SA as well as from a number of large corporations.

FRA’S, IRS, ROD’S, Futures, Options, Yield – X, CFD’S etc, etc….

Is this financial terminology or a foreign language?

 The term “derivatives” ordinarily conjures up feelings of nervous apprehension and extreme fear. This is possibly as a result of numerous financial disasters accredited to the abuse, rather than smart use of these instruments.

Let us help you to change this mindset and prove to you that derivatives CAN be used successfully and advantageously to manage interest rate, liquidity and foreign exchange risks. These instruments can be used to some extent or another in small, medium and large businesses.

Now, with the recent development of the new Yield – X exchange at the Johannesburg Securities Exchange, many of these derivatives are available for use by the individual e.g. to manage mortgage bond interest rate exposure etc.

Full Value Financial Training-Who we are!

Full Value Financial Services is a BANK SETA registered, financial training company (registration #557032), specializing in training and consulting in financial markets. All our trainers are market practitioners and are able to explain complex financial terms and jargon in simple, understandable English. We have trained delegates from all major banks and financial institutions in South Africa, as well as abroad.

Our aim is to offer meaningful and cost-effective training. The course objective is to enable the delegates to utilize what they have learned on the course, in the workplace.

Course Details:

Primary Objectives: To explain the uses of Interest Rate Swaps, Forward Rate Agreements, RODS and Options.

As can be seen from the primary objectives stated above, this workshop focuses on how some of the more vanilla interest rate derivatives can be used and applied in commerce and industry.

The concept of each derivative will be explained, together with the basic Math applicable to these instruments. Of vital importance to the treasurer or financial officer will be the RISKS associated with these instruments and how these risks can be managed.

Briefly the workshop will cover the following topics:

1. Introduction to Derivatives
2. Forward Rate Agreements (FRA’s)
   • Who uses them and how to use them
   • FRA settlement calculations
   • Risk Management
3. Interest Rate Swaps (IRS)
   • Who uses them and how to use them
   • IRS settlement calculations
   • Risk Management

4. RODS
5. Interest Rate and Currency Options
   • Benefits of options i.r.o FRA’s and IRS’s
   • Risk Management

A discount of 10% is offered to companies where 6 or more delegates from the same company attend the workshop.

The above costs are inclusive of:

• Daily lunch and refreshments at the course venue.
• Up to date course material
• Various practical exercises and case studies
• Well qualified and experienced workshop director

Methodology:

This is a “derivatives workshop” and not a series of lectures. In other words the delegates will learn about the theory and then apply this knowledge in the completion of various exercises and case studies.

The workshop is extremely practical, with far more emphasis being placed on the exercises and case studies than on the theory.

Duration:  2 full days

6. Course Directors:

Mike Sandler is an experienced financial markets practitioner and trainer. He started his treasury career in 1985 and has worked in both large and small banks, having traded in the money-bonds, derivatives and forex markets. Mike has been involved in financial markets training since 1995.

Apart from many other courses he has presented the ACI Dealing Certificate workshops in South Africa, Zambia, Namibia, Malawi and Uganda, obtaining excellent results