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Financial Sector Policies

Quantitative Techniques for Debt Management (QDM)

Deadline passed

Session No.: ST 24.18

Location: Singapore, Singapore

Date: May 20-24, 2024 (1 week)

Delivery Method: In-person Training

Primary Language: English

    Target Audience

    Officials from finance ministries, treasury departments, debt management offices, and central banks.

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    Qualifications

    Participants are expected to have a degree in economics or finance, or equivalent experience, as well as at least two years of working experience in debt management.

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    Course Description

    This course, presented by the Monetary and Capital Markets Department, aims to build capacity on key quantitative concepts in fixed income for debt managers, and for undertaking debt management operations. It is designed to enable participants to improve their analysis of potential financing options and be able to evaluate the pricing of loans and securities. In addition, the course will help debt managers to understand relevant quantitative techniques in liability management operations, and options for developing and publishing yield curves when pursuing a benchmark issuance strategy.

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    Course Objectives

    Upon completion of this course, participants should be able to:

    • Understand the characteristics of different debt management instruments in terms of their cashflows and be able to calculate price, yield, modified duration and other metrics.
    • Understand the difference between forward, spot and par yields and be able to build basic yield curves using fitting techniques in Excel.
    • Understand how to actively manage the redemption profile with debt buybacks, reverse and switch auctions, including the pricing mechanics of such operations.
    • Demonstrate a knowledge of other relevant financial instruments for a debt manager, including repo, interest rate and exchange rate swaps.
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