Basic Financial Market Calculations

What is it about?

This one-day workshop is aimed at providing insight into the basic calculations for people working in financial markets. A step-by-step approach will be used to explain the use of the HP10b financial calculator. Delegates will have the option to either bring their own, or purchase a financial calculator from SAIFM. Foundational to the program is developing the ability to calculate the value of a single cash flow, multiple cash flows and the application of these calculations for pricing and valuing financial instruments. The ability to determine a rate of return on an investment and convert a nominal interest rate to an effective yield will also be clearly explained. Many practical examples will be conducted to cement concepts.

Outline

Session 1 – Getting to grips with the HP10b Financial Calculator

Setting the parameters for time value of money
Basic calculations using brackets
Storing and recalling numbers
Identifying other useful functions

Session 2 – Simple Interest calculations

Day count and annual basis applied to different currencies
Demystifying the jargon of financial calculations
Nominal and effective rates
Determinants of the nominal interest rates
Simple Interest present value, future value, and per annum interest rate

Exercises

Calculate simple interest and future value of a single cash flow
Calculate the present value of a single cash flow
Calculate the yield on an investment given the simple interest and the initial principal amount

Session 3 – Time Value of Money

Future value and present value of a single cash flow
Future Value and present value of multiple cash flows – Annuities
Internal rate of return

Exercises

Calculating a present value of a stream of cash flows
Calculate the periodic repayments on a mortgage
Calculate the internal rate of return give a required return on capital

Session 4 – Interest Rate Conversions

Equivalent annual effective rate
Nominal annual rates compounded periodically (NACP)
NACP rates to effective rates
Effective rates to NACP rates
One NACP to another NACP
Discount rate and yield relationship

Exercises

Calculating an annual yield from a NACP rate
Converting one NACP to another NACP
Converting a discount rate to a yield

Workshop closure

André Kurten

andre

André holds BCom Honours degree in Business Management from UNISA and is a CAIB (SA) with the Institute of Bankers in SA.

André is a Fellow of the South African Institute of Financial Markets and has served as a Governor on the board for over 17 years. He has extensive knowledge of banking, treasury and finance products.

André worked in the treasury at Nedcor for 9 years, where he traded money and bond markets. While at Nedcor, he was instrumental in establishing the interest rate derivative trading desk. André worked at two major interdealer brokers as a Director responsible for Interest rate derivative broking.

André worked at ABSA as Head of their agricultural derivatives trading desk in 1994. During his time at ABSA, André sat on the executive committee of the SA futures Exchange Agricultural Markets Division.

André worked for the SA Futures Exchange for a year as Assistant General Manager responsible for interest rate product development.

The ACI Financial Markets Association recognizes André as a training provider for both the ACI Dealing and Operations Certificate programs.

André has been training for 16 years and is extensively traveled having facilitated workshops and training interventions for many of the large multinational financial institutions from introductory to advanced level in Singapore, Hong Kong, Dubai, Oman, KSA, Malaysia, China, Sri Lanka, India, Pakistan, Uganda, Malawi, Zimbabwe, Zambia, Namibia, Kenya, Nigeria, Ghana, and South Africa. He consults to a number of companies on treasury product implementation and hedging.

André has conducted over 100 ACI Workshops internationally with an outstanding first time pass rate for both the ACI Dealing and Operations certificate.

André authored a book titled “Introduction to Derivatives – A South African Perspective”.

CPD

CPD for FAIS purposes
This workshop provides verifiable CPD points in terms of the Determination of Fit and Proper Requirements for Financial Services Providers, BN 194 of 2017, provided that the content is appropriate for your role within the company. A certificate of attendance will be issued that could be submitted to your company’s compliance officer. The number of verifiable CPD hours will be up to 5 h 00 minutes.

CPD for SAIFM members’ purposes
This workshop provides verifiable CPD points in terms of the CPD policy of SAIFM provided that the content is appropriate for your current or future role within the company. A certificate of attendance will be issued, which should be retained and submitted should you be selected for a SAIFM member CPD audit. The number of verifiable CPD hours will be up to 5 h 00 minutes.

Enquiries and bookings

All bookings and enquiries can be directed to Melissa Joao: melissa@saifm.co.za / 011 802 4768

DATE TBC

TIME 09H00 – 15H00

COST
SAIFM Full members pay R4461.25 per person (Inc. VAT)
SAIFM Affiliate members pay R4884.80 per person (Inc. VAT)

HP10b Financial Calculator Note in order to gain the full benefit of this workshop, it is essential that the HP10b Financial Calculator is used. Delegates attending would need to source their own HP10b Financial Calculators.

KINDLY NOTE: Closing date for bookings and receipt of payment is 14 April 2021

Disclaimer: Once SAIFM has confirmed that a workshop would carry on, cancellations will only happen in unforeseen, emergency situations such as the trainer becoming indisposed. In such extreme cases, proof of the event that necessitated the cancellation, including a doctors’ note if the trainer is indisposed, will be provided to delegates to present to their employers. While every effort is made to ensure that confirmed workshops continue uninterrupted, it may happen in rare circumstances that we are obliged to cancel. In such a case, a full refund will be made. It is recommended that uncapped wifi/fibre is made use of for the duration of the workshop. All data costs incurred will be for your own account.