Debt Management Training
Course.

24 - 28 June 2024
Sandton Centre Johannesburg South Africa

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Register Now! Limited Seats Available!

R 17, 999.00 Per Delegate.

Course overview:

Why is debt management important? When it comes to raising finance, a company has several sources for the acquisition of funds. These sources can be broadly categorized into debt and equity. Equity share and preference share issues are a popular way of raising funds through selling shares of the company to the general public and institutional investors.

Knowledge about debt management will guide the managers to achieve optimal capital structure and develop an inclusive debt policy. It becomes crucial to do so otherwise it can negatively hamper the firm’s reputation and credit rating which in turn affects its ability to avail future credit.

This course on Debt Management aims to manoeuvre its participants towards dealing with practical debt issues efficiently. The course focuses on various nuances of debt and credit management within the organization.

It deals with techniques of how debt service capacity can be evaluated, capital gearing effects, analysis and handling of credit risk, debt reduction strategies, etc. In recent times many public sector enterprises have come under observation for being debt-ridden.

Conscious efforts are required to extract them out of debt traps. In such light, it becomes even more important to grasp a deeper understanding of the subject. This course also draws a clear picture on topics like sovereign lending and bond market to gain rooted perceptiveness on how public debt affects various industries.

Course Objectives:

On successful completion of the Debt Management course, participants shall be able to:

  • Understand various components of debt management
  • Know various debt instruments and their classification based on fundamental features like maturity, coupon and principal
  • Recognise different money market and capital market fixed instrument alternatives available to a firm
  • Appreciate the framework of the debt market and its segment: wholesale debt market and retail debt market. Also, gain knowledge on how their functioning affects the economic health of the state
  • Design reliable debt management strategy for their firm to fulfil their target of optimal capital structure and shareholder’s wealth maximization
  • Comprehend various strategies of debt restructuring
  • Develop negotiation tactics with moneylending institutions
  • Gain an understanding of how to bond yield curve works and yield curve analysis

Targeted Audience:

  • Budding entrepreneurs, start-up founders
  • Financial managers, credit managers
  • Accountant
  • Departmental heads, managers, executives
  • Financial analysts
  • Financial advisors
  • Credit insurers, brokers
  • Investors

Course Outline:

Module 1: Basics of debt management

  • Debt financing
  • Effect of debt on profits
  • Benefit of debt financing
  • Capital structure decision process
  • Capital gearing
  • Financial leverage- debt ratio, interest coverage ratio
  • Strategies of debt reduction, debt restructuring, debt consolidation
  • EBIT-EPS analysis
  • Debt negotiation
  • Debt trap

Module 2: Debt market

  • Debt market segments: wholesale segment and retail segment
  • Participants in debt market
  • Secondary market for debt instruments
  • Intermediaries of debt market

Module 3: Debt instruments

  • Instrument features: maturity, coupon, principal
  • Risks involved in debt instruments- interest rate risk, inflation risk, reinvestment risk, liquidity risk
  • Instruments on the basis of modification of coupon: zero coupon, treasury scrips, floating rate bonds
  • Instruments on the basis of modification of term to maturity: callable bonds, puttable bonds,
  • Money market and capital market debt instruments
  • Debenture and their types

Module 4: Risk management and credit rating

  • Credit rating
  • Financial indicators affecting credit rating
  • Type of risks and establishing risk management framework- rollover risk, liquidity risk
  • Risk management practices

Module 5: Sovereign lending

  • Overview of sovereign lending and borrowing
  • Debt sustainability analysis
  • Debt indicators: external and fiscal indicators

Module 6: Valuation of bonds

  • Bond values and yields: value of bonds with maturity, perpetual bonds
  • Yield to maturity
  • Yield curves: normal, flat, inverted, humped
  • Flattening of yield curve
  • Theories of the term structure of interest rates- pure expectation hypothesis, liquidity preference

Module 7: Public debt policy

  • Formulation of public debt policy
  • Public debt management
  • Government borrowing policies
  • Government guarantees

Module 8: Fiscal Policy and Balance of Payment

  • Overview of balance of payment
  • BOP elements
  • Sources of imbalances
  • Fiscal policy and fiscal deficits
  • Fiscal sustainability
  • Assessing and managing fiscal risks

End of the workshop

IN HOUSE AND ONLINE TRAINING

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While both In-House and Online training can present with cost-effectiveness and time-efficacy, there are some very specific differences between in-house courses and those based online.
The demand for additional courses by individuals or groups of people is increasing. Still, it depends entirely on the preferences of a person what type of training he or she wants to receive. Online courses and in-house training carry some similarities but they are considered to exhibit some very pivotal differences too. Despite that, both types of learning can be really beneficial for attendees.

For Registration and other Training arrangements,
contact us on the detail below.

SOUTH AFRICA : +27 11 057 6001
TANZANIA Cell: +255 769 688 544
WhatsApp +27 79 574 0389
info@bmktraining.co.za / www.bmktraining.com