Basics of Financial Markets. Money Market & Interest Rate Derivatives

This comprehensive training course is designed to provide participants with an in-depth understanding of the money market and its associated derivatives. The aim is to equip trainees with essential theoretical knowledge and practical skills necessary for engaging in project activities that require expertise in this specific domain. Through a combination of theoretical insights, case studies, and practical exercises, participants will gain a well-rounded understanding of the money market, enabling them to effectively apply their knowledge in real-world scenarios.

The course covers the following key topics:

- Money Market Fundamentals: Participants will explore the core principles of the money market, including its purpose, key participants, and the various types of transactions that occur within it. This segment provides a solid foundation for understanding the broader context and significance of the money market in the financial system.

- Money Market Instruments: This section delves into the various instruments traded in the money market, such as Treasury bills, commercial paper, certificates of deposit, and repurchase agreements. Participants will learn about the characteristics, valuation, and usage of these instruments in managing short-term liquidity needs.

- Reference Rate: The course will cover the importance and function of reference rates in the money market, including commonly used rates such as LIBOR, EURIBOR, and their successors. Participants will gain insights into how these rates are determined and their impact on money market instruments and interest rate derivatives.

- Interest Rate Derivatives: This segment focuses on the various types of interest rate derivatives, including swaps, futures, and options. Participants will learn about the characteristics, valuation, and applications of these derivatives in hedging interest rate risk and speculative strategies. Practical examples will illustrate the use of interest rate derivatives in different market scenarios.

By the end of this course, participants will:

- Gain a comprehensive understanding of the money market, including its purpose, key participants, and the types of transactions that occur within it.

- Understand the characteristics, valuation, and usage of various money market instruments and how they are used to manage short-term liquidity needs.

- Develop a solid grasp of reference rates, including how they are determined and their impact on money market instruments and interest rate derivatives.

- Acquire knowledge of interest rate derivatives, including their types, valuation, and practical applications in risk management and speculative strategies.

- Enhance their problem-solving skills through case studies and test questions, reinforcing their understanding of the material and its practical applications.

Practical exercises and case studies will be integrated into the course to reinforce learning and provide participants with opportunities to apply the concepts and techniques discussed. These exercises will simulate real-world situations, allowing trainees to gain valuable experience and build confidence in their ability to navigate the money market and utilize interest rate derivatives effectively.

This course is ideal for finance professionals, analysts, and project managers seeking to deepen their knowledge of the money market and its derivatives and to develop the practical skills needed to excel in their roles. By the end of the training, participants will be well-equipped to apply their understanding of money market fundamentals and interest rate derivatives to their professional activities, enhancing their effectiveness and strategic decision-making capabilities in the financial markets.