SANEM Workshop on Introduction to Interest Rate Markets

SANEM Workshop on Introduction to Interest Rate Markets 
December 17, 2017
SANEM Conference Room, Dhaka, Bangladesh

Lecturer: Tanweer Akram, PhD
Dr. Tanweer Akram is Director of Global Public Policy and Economics at Thrivent Financial. He develops the firm’s global macroeconomic outlook and identifies the risks to the global economy. He is also responsible for representing the firm’s views on financial regulation at international forums. He has served as a delegate to B20 China and B20 Germany taskforces on financing growth and infrastructure.
Dr. Akram has previously worked for Voya Investment Management (formerly ING Investment Management) and Moody’s Analytics (formerly Moody’s He has also worked for the World Bank, A.T. Kearney, and the International Monetary Fund. He was a Visiting Research Fellow at the Centre for Policy Dialogue. He has taught at Barnard College and Columbia University in the United States, and North South University in Bangladesh. Dr. Akram has presented his research at various international conferences. His research papers and reviews have appeared in various peer-reviewed economics journals, including Applied Economics, Applied Economics Letters, Bangladesh Development Studies, Business Economics, Economic Modelling, Journal of Asian Business, Journal of Economic Issues, Journal of Emerging Markets, Journal of Post Keynesian Economics, Kyklos, and Savings and Development. He received his Ph.D. degree in economics from Columbia University in New York and his Masters’ degree in economics from the London School of Economics in the U.K. He obtained his Bachelor of Arts in Economics from Grinnell College, Iowa, USA.

Overview of the Workshop:
The development of fixed income products and interest rate markets is a key component to capital market development. As Bangladesh develops its financial services industry and the role of financial intermediation increases, banks, insurance companies, and other financial institutions will need to provide a wide range of fixed income products and services.

Course Date: December 17, 2017 (Sunday)

Open to: 

Bankers, Central Bankers, Government Officials, Economists, Investors, Issuers of Bonds, Corporate Executives, Graduate students of Economics/Development Economics, Finance and Business Administration.

This short course, consisting of several lectures, will introduce the main features of interest rate markets and securities. First, it will provide an intuitive overview of interest rate markets. Second, it will examine the mathematical framework for understanding interest rates. These lectures will be of interest to those working in banks, insurance, asset management, financial institutions, capital markets, the central bank, and financial regulatory agencies. Graduate students and researchers interested in interest rate markets can also benefit from the combination of a real-world perspective and a mathematical framework.

Format: This course will consist of five 1 hour lectures.

Outline of the Lectures:

1. Introduction to Financial Markets 
a. Bonds
b. Stocks
c. Derivatives
d. Organization of Financial Markets
e. Margins
f. Transaction Costs


2. Interest Rate Markets: Introduction to Bonds
a. Basics of Bonds
b. Risks Embedded in Fixed Income Instruments
c. Discounting
d. Bond Pricing
e. Yield Curve
f. Duration
g. Convexity
h. Repo Markets
i. Bid Offer
j. Calculating Profit/Loss (P/L) of a Bond
k. Carry and Forward Rates
l. Forward Rates
m. Rolldown/Slide
n. Curves and Spreads
o. Butterflies and Condors

3.Overview of Fixed Income Markets
a. The Central Bank (the Federal Reserve)
b. Treasuries
d. Inflation‐linked Treasury Securities (TIPS)
e. Mortgages
f. Agency Debt
g. Corporate Bonds
h. Municipal Bonds

4. Introduction to Futures Markets
a. Basics of Futures Transactions
b. Eurodollar Futures
c. Convexity Bias (or Financing Bias)
d. Creating Longer Dated Assets Using Eurodollar Futures
e. Treasury Futures
f. Fed Funds Futures

5. Introduction to Swaps
a. Duration and Convexity
b. Uses of Swaps
c. Other Types of Swaps

Agenda of the workshop on Introduction to Interest Rate Markets:  Agenda of Introduction to Interest Rate Markets


1. Introduction to Financial Markets

2. Introduction to Bonds

3. Overview of Fixed Income Markets

4. Introduction to Futures Markets

5. Introduction to Swaps