Derivatives in Fund Management

• Structure of the market
• Exchange traded v OTC
• Hedging, Gearing / Leverage                        

• Role of the Clearing House, Margining
• Effects of margin on cashflow                      

• The Use of Derivatives in Asset Allocation                                              
  
• To change asset classes                   
• Currency overlay, Use of FX options

• CFD’s, CFD case study. We look at the practical issues, stamp duty
• Asset Swaps, Credit Derivatives, CDS’s, CBO’s
• How a Credit Default Swap is priced  
• Collateralised Bond Obligation

• IRS and Efficient Portfolio Management (EPM)
• Swaptions
• Hedging Credit risk of a portfolio

• The use of Government bond futuresto hedge a bond portfolio.
• We examine the effectiveness through case studies.                                   
• Can Options Manage Portfolio Risk?
• A case study in which we use Index optionsto hedge an equity portfolio.

• Writing Options                                            
• Using examples, we look at the benefits and risks of writing “covered” and “naked” options

• Managing Options
• Delta
• Gamma
• Vega