What past delegates say?
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Product Manager, HSBC
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Deputy Director, Ministry of Finance, Latvia
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Former Delegate, FINREP
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Head of the Department, National Bank of Ukraine
Very good experience. Relevant to what I wanted to get out of it.”
Former Delegate, Fairbarn Private Bank
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Former Delegate, USAID
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Senior Manager, National Bank of Ukraine
The Repo Market
This programme is only available on in-company basis. Please, contact us for more information
Applications in Today's Market
This 1 day course is designed for delegates who are either new to the business of bond repurchase agreements (repos) or want to refresh their knowledge. You will learn how repos are priced, settled and why they are transacted by different participants in the market, including pension funds, hedge funds, market makers and derivatives users. You will also learn about bonds and key money market operations.
You will have a chance to explore applications of repos for risk management, speculation and arbitrage purposes with a particular emphasis on the relationship between the bond repo market and derivatives such as swaps and exchange traded bond futures.
Course Level: Introductory
What Will You Learn
By the end of this course you will:
Main Topics Covered During This Training
Who Should Attend
Anyone who is new to the Repo market or want to refresh their knowledge about this instrument.
Basic understanding of the following aspects will be useful:
However, this is not an absolute requirement as a brief review of these topics is given at the start of the programme.
In-Company, call us for more information
- Explanation of the money markets
- Importance of LIBOR as a benchmark rate
- T-bills, bills of exchange,
- Certificate of Deposits, Commercial Paper
- Explanation of a repo
- Secured lending/borrowing rate
- Definition of bond types
- Fixed, floating, zero coupon bonds
- Coupon and accrued interest
- Clean (net) and dirty (gross) price
- Relationship between a bond price/yield
- Yield to maturity formula versus spot yield curve
- Market development and history
- Definition of repo types and legal agreements
- Classic repo
- Determining the repo rate – special v general collateral
- Applying a “haircut” in a bi-lateral repo
- Mark to market
- Hold in custody repo and triparty arrangement
- Sell/buy back repo
- Repo rate implicit in sell back price
- Collateral lending
- Swapping one bond or asset for another
- Cross currency repos
- How does central clearing for repos work?
- Role of the clearing house
- Margining for repos and netting
- Bond dealers and market makers – financing a long or short position
- Pension funds – enhancing the yield on their portfolio
- Hedge fund managers – leveraged trading, spread trading
- Bank Repo desk – ALM funding operation
- Swap trader - warehousing a swap position
- Bond futures and the concept of implied repo rate
- Bond dealers – covering a failed delivery
- Central bank operations – repo and open market operations
Paul has over 20 years experience of working and teaching in the financial and derivatives industry. Paul joined the London International Financial Futures and Options Exchange (LIFFE) in 1988, spending several years on the exchange trading floor before transferring to LIFFE’s Business Development Department.
During his time at LIFFE, Paul worked in the fields of broker relations, product research and development, marketing, market automation and education. Paul was Head of Education at LIFFE, before leaving in Dec 1998 to pursue a freelance career in financial education and consultancy.
Paul is also a qualified teacher and has extensive speaking experience both in the UK and abroad, covering all the major aspects of financial markets. Paul has taught delegates from virtually all of the worlds leading investment banks, funds and trading houses. The list of clients includes JP Morgan, Goldman Sachs, Deutsche Bank, Barclays Capital, Morgan Stanley and Merrill Lynch among others.
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