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End Users' Guide to Risk Management and Derivatives

Rahul Ghosh

ISBN: 9788126541621

444 pages

INR 799

Description



Managers are overwhelmingly end users of derivatives and prospective managers (today’s students) would become so shortly. Derivative end users are the very reason that this market exists. That’s why this book is designed for students and practitioners alike, from the perspective of derivative end user.

Contents

 

Praise for the Book

Foreword

Preface

Acknowledgements

Chapter 1 Risks in Markets

1.1 Introduction

1.2 Currency Risks

1.3 Commodity Risks

1.4 Interest Rate Risk

1.5 Thought for Decision Makers

Chapter 2 Exposures in Debt

2.1 Currency Risk

2.2 Interest Rate Exposure in Debt

Chapter 3 The Floating Rate Problem

3.1 Background and Debt

3.2 Risk Appetite

3.3 Hedge Products

3.4 Decision

3.5 Historical Outcome and Cost Comparison

3.6 The Risk Management Discussion

Chapter 4 The Cost Control Move

4.1 Introduction

4.2 Managing Debt Cost

4.3 LIBOR Movements in 2004 and 2005

4.4 Cost Control Move

4.5 Impact of Fresh Market Dynamics

4.6 Risk Management Discussion

Chapter 5 A “Hedged” Bet

5.1 Introduction

5.2 Debt-Related Planning

5.3 Hedging Strategy

5.4 Hedge Execution

5.5 Market Movements and Impact on Debt and Derivative

5.6 Value of DCLF’s Swap

5.7 Risk Management Discussion

Chapter 6 Not So Crude

6.1 Introduction

6.2 Relationship with Markets

6.3 Exposure Management: 2004–2006

6.4 Events in 2006

6.5 Aftermath of 2006 and Entry of Niran

6.6 Strategy Implementation Plan

6.7 Implementation of New Hedge Programme

6.8 Performance of the Hedge Programme

6.9 Subsequent Market Events and Impact on HYC

6.10 Board Review

6.11 Niran’s Review

6.12 Risk Management Discussion

 

Chapter 7 A Sweet Tale

7.1 Introduction

7.2 Sugar Country

7.3 Sourcing the Raw Material

7.4 Sugarnomics

7.5 Exposures at White Sugar Ltd

7.6 Preparing a Strategy

7.7 Sugar Hedge Programme

7.8 The Risk Management Discussion

Chapter 8 For Your Breakfast

8.1 Introduction

8.2 Business Overview

8.3 Nature of Risks

8.4 The Hedge Programme

8.5 The Risk Management Discussion

Chapter 9 From Carrying to Being Carried

9.1 Introduction

9.2 The Internal Audit

9.3 Risk Management Discussion

9.4 What Happened Next?

Chapter 10 The Friendly Coefficient

10.1 Introduction

10.2 Business and Financing

10.3 Hedging at FNKT

10.4 The Risk Management Discussion

Chapter 11 In Business of the Uncertain

11.1 Introduction

11.2 Exposures and Risks

11.3 Risk Mitigation Plan: The Discussion with Board

11.4 Executing Options Programme

11.5 Evaluation of Options Programme

11.6 The Risk Management Discussion

11.7 Risk Management and Governance

 

Chapter 12 Live Wire

12.1 Introduction

12.2 NCCI’s Financials

12.3 Copper Concerns

12.4 Natsuki’s (NCCI) Response to Challenges

12.5 The Deal

12.6 Understanding NCCI’s Derivative Contract

12.7 Risk Management Discussion

Chapter 13 Long-Term Exposures

13.1 Introduction

13.2 Risks and Management

13.3 RiMG Strategy

13.4 Risk Management Discussion

Chapter 14 The Buying Decision

14.1 Introduction

14.2 The Risk

14.3 Derivative Suitors

14.4 Getting behind HBTJL’s Currency Derivatives

14.5 The Deals

14.6 Rise in Exposure, Fresh Strategies and Need for More Derivatives

14.7 Getting behind the New Derivatives

14.8 Life of Derivatives and the Finale

14.9 The Risk Management Discussion

Chapter 15 Save the Principal

15.1 Introduction

15.2 The Debt

15.3 Hedge for Principal Payment I

15.4 Hedge for the Final Principal Payment

15.5 Outcomes

15.6 The Risk Management Discussion

 

Chapter 16 Bonds of Concern

16.1 Introduction

16.2 General Bank and Interest Rate Concerns

16.3 Preparing Strategies

16.4 Strategy Implementation

16.5 Valuation of Liability Derivative

16.6 A Year Later

16.7 The Risk Management Discussion

Chapter 17 The Juggernaut

17.1 Introduction

17.2 Physical Trading

17.3 Paper Trading

17.4 Treasury

17.5 Risk Office

17.6 Escapades and Ameliorations

17.7 Derivatives Portfolio and Events in 2015

17.8 New Strategies

17.9 Sample Derivatives from OPH’s Trading Book Portfolio

17.10 Getting Behind the SPs

17.11 Risk Office Revisited

 

Summary

Review Questions

Notes

Bibliography

Index