Excellence in Financial Training

Home
ABOUT
Services
Course Library
Training Curriculum
  • Financial Accounting
  • Alternative Investments
  • Banking & Regulations 1
  • Banking & Regulations 2
  • Capital Markets
  • Capital Market Operation1
  • Capital Market Operation2
  • Corp Finance Mergers & AQ
  • Derivatives 1
  • Derivatives 2
  • Crypto Currencies
  • Equities
  • Excel & Financial Model
  • Fixed Income
  • Portfolio & Wealth Mgmt.
  • Risk Management 1
  • Risk Management 2
Clientele
CONTACT

Lucas & Associates

Lucas & AssociatesLucas & AssociatesLucas & Associates
Home
ABOUT
Services
Course Library
Training Curriculum
  • Financial Accounting
  • Alternative Investments
  • Banking & Regulations 1
  • Banking & Regulations 2
  • Capital Markets
  • Capital Market Operation1
  • Capital Market Operation2
  • Corp Finance Mergers & AQ
  • Derivatives 1
  • Derivatives 2
  • Crypto Currencies
  • Equities
  • Excel & Financial Model
  • Fixed Income
  • Portfolio & Wealth Mgmt.
  • Risk Management 1
  • Risk Management 2
Clientele
CONTACT
More
  • Home
  • ABOUT
  • Services
  • Course Library
  • Training Curriculum
    • Financial Accounting
    • Alternative Investments
    • Banking & Regulations 1
    • Banking & Regulations 2
    • Capital Markets
    • Capital Market Operation1
    • Capital Market Operation2
    • Corp Finance Mergers & AQ
    • Derivatives 1
    • Derivatives 2
    • Crypto Currencies
    • Equities
    • Excel & Financial Model
    • Fixed Income
    • Portfolio & Wealth Mgmt.
    • Risk Management 1
    • Risk Management 2
  • Clientele
  • CONTACT

Lucas & Associates

Lucas & AssociatesLucas & AssociatesLucas & Associates
  • Home
  • ABOUT
  • Services
  • Course Library
  • Training Curriculum
    • Financial Accounting
    • Alternative Investments
    • Banking & Regulations 1
    • Banking & Regulations 2
    • Capital Markets
    • Capital Market Operation1
    • Capital Market Operation2
    • Corp Finance Mergers & AQ
    • Derivatives 1
    • Derivatives 2
    • Crypto Currencies
    • Equities
    • Excel & Financial Model
    • Fixed Income
    • Portfolio & Wealth Mgmt.
    • Risk Management 1
    • Risk Management 2
  • Clientele
  • CONTACT

derivatives 2

Derivatives have many different applications depending who is using them and why they are being used.  The most common application is to assist corporations, commodities producers, investors and financial services firms manage risk exposures.  Alternatively, derivatives may be used by investors and speculators to make leveraged bets and reduce transaction costs in an enormously wide range of markets.

While many derivatives contracts are traded on formal exchanges, the vast majority of derivatives are over-the-counter (OTC) – essentially private, customized transactions.  These OTC transactions bring with them additional risks, namely counterparty credit, that do not exist for exchange traded contracts.

Lucas and Associates provides a complete offering of derivatives courses that range from introductory overviews to advanced level seminars, along with specific programs that focus on the operational and credit risks incumbent in managing the use of these financial products.

Introduction to Derivatives

Options Overview

Options Trading and Portfolio Management

Swaps Overview

Intermediate Swaps

Forwards & Futures Overview

Intermediate Forwards & Futures

Demystifying Structured Products

Equity Derivatives

Introduction to Credit Derivatives

Operational Risk Financial Derivatives

Credit Risk of OTC Derivatives

Intermediate Forwards & Futures

This course provides participants with an overview of short-term (3-month) interest rate futures and bond futures.  Delivered by the former Chief Dealer and Head of Global Markets for American Express Bank, the program covers the main aspects of interest rate futures pricing and the ways in which futures can be used for hedging and trading purposes.



Duration:  One day

Program Level:  Intermediate

Prerequisites:  Forward and Futures Overview (or similar)

Learning Objectives

  • Demonstrate how futures are priced (arbitrage pricing)
  • Explain of the key characteristics of bond futures
  • Explain how to hedge with 3-month futures (stack, strip, interpolated hedges)
  • Explain how to hedge bond portfolios with bond futures
  • Demonstrate the importance of the cheapest-to-deliver in bond futures hedging and trading
  • Describe the main futures trading strategies, including basis trading
  • Explain the mechanics of basis trading

outline/topics

1 Day Program

  • Overview of Futures
    • Characteristics
    • Most popular contracts
  • Pricing and Valuation
    • Generic futures pricing
    • Futures pricing example
    • Generic futures valuation
    • Pricing coupon bearing bond futures
    • Pricing forward and futures on rates
    • Forward rate agreements
    • Contango and backwardation
    • Normal contango and normal backwardation
  • CME Eurodollar and Futures
    • Eurodollars and Eurodollar futures
    • Profit and losses in trading Eurodollar futures
    • Who uses Eurodollar futures
    • Hedging a borrowing rate
  • CBOT Treasure Note & Bond Futures
    • Treasury notes and futures
    • Conversion factors and cheapest-to-deliver
    • Treasury long hedge
  • Applications
    • Hedging an anticipated bond issuance
    • Hedging a repurchase of debt

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Demystifying Structured Products

This course will provide participants with a broad overview of structured products market.  The class will define the various types of structured products and participants will gain an understanding of the fundamental building blocks of structured products, why they are used and who uses them.  Pricing and risks associated with these products will be thoroughly discussed and will help students with an evaluation of the merits and hazards of structured products.  Participants will also learn about the various drivers in this emerging market.



Duration:  One day

Program Level:  Basic

Prerequisites:  There are no prerequisites


Learning Objectives

  • Define and categorize structured products
  • Explain the fundamental building blocks of structured products and drivers of the market
  • Explain the basic payoff profile of common derivatives used in structured products
  • Utilize basic derivatives to construct structured products
  • Discuss and analyze the basic fundamentals of pricing
  • Identify the risks associated with various structured products
  • Explain the relationship between securitization and the creation of structured products
  • Identify and discuss market, credit, counterparty, liquidity and operational risks

outline/topics

1 Day Program

  • Basic concepts
    • Definition and fundamental building blocks
    • Categories of structured products
    • Drivers of the market
  • Building blocks
    • Forwards, swaps, and options
    • Payoff profile
    • Applications
    • Fundamental pricing
    • Construction of a structured product
  • Credit products
    • Process of securitization
    • Cash flows for CDO and synthetic CDO
    • Credit indices
    • Tranches
    • Pricing components and trading strategies
  • Equity products
    • Types
    • Principal protected
    • Converts and reverse converts
    • Pricing components
    • Hybrid equity/credit
  • Fixed income
    • Types
    • Construction of fixed income product
    • Pricing components
    • Hybrid equity/interest rates
  • Other types of structured products
    • Foreign exchange
    • Commodity
  • Risks
    • Operational
    • Market
    • Credit
    • Counterparty
    • Liquidity

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Equity Derivatives

Equity derivatives provide a means by which investors can obtain exposure to or manage the risk associated with directly investing in stocks.  This course provides participants with a detailed description of the main equity derivatives traded in the market today as well as the motivations for their use in portfolio management.  This one-day program will explain the essential characteristics of equity forwards, futures, swaps and options and how they are used in various trading strategies.



Duration:  One day

Program Level:  Basic

Prerequisites:  There are no prerequisites


Learning Objectives

  • Discuss the rationale for the use of equity derivative instruments in various trading strategies
  • Explain the key features and applications (both for institutional investors and corporate customers) of equity forwards, futures, swaps and options
  • Demonstrate the link between the cash equity and derivatives market
  • Identify risks and risk management procedures for equity derivative instruments
  • Explain the importance of structured equity derivative instruments

outline/topics

1 Day Program

  • Forwards
    • Motivations for use
    • Structure and pricing
    • Dividend treatment
    • Valuation
    • Stock repurchase
  • Options
    • Calls and puts
    • Equity option styles
    • Characteristics
    • Concept of “moneyness”
    • Pricing models
    • Equity option strategies
    • Equity option strategies: Risk and reward
    • Delta hedging
  • Futures
    • Forwards versus futures
    • Clearinghouse and margin
    • Stock index futures structure and pricing
    • Single stock futures
    • Applications and motivations for use
  • Swaps and Equity Linked Notes
    • Swap characteristics
    • Single stock swaps
    • Index or portfolio swaps
    • Equity linked notes overview
    • Equity linked notes structure and motivation

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Introduction to Credit Derivatives

The evolution and establishment of credit derivatives in the last twenty years has made a significant impact on the world of finance, the global markets and the world in general.  Delivered by the former Chief Dealer and Head of Global Markets for American Express Bank, this course will provide participants with an in-depth examination of credit derivatives and their various structures and uses, as well as, an analysis of how they came to be a major component of the financial crisis. Through the use of exercises and case studies, participants will have the opportunity to understand the roles, uses, pricing and valuation in their respective markets today.



Duration:  One day

Program Level:  Basic

Prerequisites:  There are no prerequisites


Learning Objectives

  • Define a credit default swap and understand what their use is
  • Compare the different types of credit derivatives
  • Explain how a credit default swap is priced
  • Evaluate the current market for credit derivatives and the effect that regulation has had on this market
  • Identify the players in this market and their motivations and goals
  • Compare and contrast credit default swaps to other swaps as well and insurance

outline/topics

1 Day Program

  • Types of Credit Derivatives
    • Credit-linked notes
    • Asset backed swaps
  • Credit default swap valuation
    • Source of price
    • Is this a swap?
  • CDS Market
    • Change in market facts and figures
    • Index linked products
    • Central clearing
  • CDS Uses
    • Who uses CDS
    • What are some uses
    • Funding cost advantage
    • Bond hedge example
  • Counterparty credit risk

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Operational Risk Financial Derivatives

Despite the widespread use of derivatives by investors, corporate end-users and traders, operational risk remains one of the least understood and neglected risk in managing derivatives portfolios. This two-day course is designed for risk managers, auditors, compliance officers, back office and IT professionals, and regulators who are seeking  to better identify, measure, control and monitor this important risk.  The program will be highlighted with case studies of recent operational risk management initiatives and practices in the global derivatives marketplace.



Duration:  Two days

Program Level:  Basic

Prerequisites:  There are no prerequisites


Learning Objectives

  • Define operational risk
  • Identify how operational risk is manifested in OTC and exchange- traded derivatives
  • Evaluate how operational risk can materialize in the front, middle, and back offices of a derivatives group
  • Discuss different measurement approaches to operational risk
  • Evaluate best practices to control and monitor operational risk

outline/topics

Day 1

Day 1

Day 1

  • Defining and identifying operational risk
  • Sources of operational risk
    • People
    • Processes
    • Technology
    • External events
  • Regulatory influence
  • Life cycle of a financial derivative
    • Role of front, middle, and back offices
    • Pre-and post-trade activities
    • Confirmation and settlement processes
    • Evaluation of internal controls
    • Standards for reliability and soundness of back office
    • Reconciliation procedures
    • Resolution of disputed trades and discrepancies
    • Fraudulent trades and their prevention

Day 2

Day 1

Day 1

  • Measuring operational risk
    • Operational risk measurement models
    • Advantages and risks of operational risk measurement models
  • Controlling and Monitoring Operational Risk in Derivatives Portfolios
    • Best practices to control operational risk
    • Advantages and disadvantages to back offices structures
    • Financial regulations and their impact on the control of operational risk
    • The role of key personnel
    • Best practices in monitoring operational risk

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Credit Risk of OTC Derivatives

In the last decade-and-a-half, over-the-counter (OTC) derivatives have grown from being relatively obscure financial products into standard risk management tools. Notwithstanding their commonplace standing today, establishing an effective risk management process for OTC derivatives remains a challenge for end-users, dealers, clearing agencies and other related parties. Additionally, Dodd-Frank and Basel III rules have changed the OTC derivatives landscape significantly. This two day course will focus on practical implementation issues for establishing an effective risk management framework in an uncertain, global regulatory environment.



Duration:  Two days

Program Level:  Basic

Prerequisites:  There are no prerequisites


Learning Objectives

  • Define credit risk
  • Identify credit risk in OTC FX, Interest Rate, and Equity Derivatives
  • Evaluate credit risk measurement methodologies
  • Identify basic capital regulatory requirements
  • Describe the mechanics of major credit derivatives
  • Describe an effective risk management framework for addressing credit risk in OTC derivatives
  • Identify and describe credit risk management monitoring practices

outline/topics

Day 1

Day 1

Day 1

  • Derivatives and the Evolving Role of the Credit Risk Manager
    • Risk management process and framework
    • Defining credit risk
    • Pre-settlement and settlement risks of derivatives
    • Role of the credit risk manager
  • Statistics Review
    • Distributions and confidence levels
    • Volatility and volatility calculations
  • Credit Risk in Derivatives
    • Foreign exchange forwards, swaps, and options
    • Interest rate swaps
    • Equity options
    • Complex options

Day 1

Day 1

Day 1

  • Measuring credit risk
    • Estimating counterparty risk
    • Estimating risk mitigation
    • Challenges in estimating PFE
    • Documentation, netting and enforceability
    • Monte Carlo techniques
    • Credit risk measurement models
    • Stress testing and back testing
  • Controlling credit risk
    • Requirements for Board and Senior Management to control credit risk
    • Challenges with data quality and model development and maintenance
    • Credit risk mitigants
  • Monitoring credit risk in derivatives
    • Monitoring process
    • Best monitoring practices
    • Integration of the framework systems and data

For a detailed outline and additional information on this course or to find out about our other courses, contact us at (917) 306-7132 or MPorio@Lucasnassoc.com 

Copyright © 2023 Lucas and Associates - All Rights Reserved.

  • Privacy Policy
  • Terms and Conditions

Powered by GoDaddy

We Are Global

Let us enlighten you.

This website uses cookies.

We use cookies to analyze website traffic and optimize your website experience. By accepting our use of cookies, your data will be aggregated with all other user data.

Accept