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DAY 1 - MONDAY, JULY 24
8:30 a.m. REGISTRATION AND ADMINISTRATIVE BRIEFING (JVI)
8:45 a.m. Opening Session on Implementation Issues in Participant Countries Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
This is the ice-breaker session where all participants introduce themselves and briefly (3 min. max) present the main issues of concern in strategy implementation and the current problems in debt management.
9:15 a.m. Designing a Government Debt Management Strategy: A Summary, Rodrigo Cabral, Senior Financial Officer Financial Advisory and Banking, World Bank Treasury
- Why is it important to have a debt management strategy?
- Review of the process for strategy design
- Cost and risk trade-offs
- Macroeconomic considerations
- Market development issues
- Trade-offs made in the formulation of a strategy
- Governance arrangements
10:00 a.m. Implementing a Debt Management Strategy: Issues and Threats – Part 1, Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
This session will cover the main topics and concept involved in the implementation of a debt strategy. It is intended to cover “the broad picture” of tactical decisions and specific issues entailed in the implementation of a debt strategy. It will also provide useful concepts to be applied during the hands-on sessions later in the course.
11:15 a.m. COFFEE BREAK
11:30 a.m. Implementing a Debt Management Strategy: Issues and Threats – Part 2 Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
This session will cover the main topics and concept involved in the implementation of a
debt strategy. It is intended to cover “the broad picture” of tactical decisions and specific
issues entailed in the implementation of a debt strategy. It will also provide useful concepts
to be applied during the hands-on sessions later in the course.
12:30 p.m. GROUP PHOTO
1:00 p.m. LUNCH (participants’ own arrangements)
2:00 p.m. Implementing a Debt Management Strategy: Case of Hungary Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
- Background
- Front Office structure
- Designing the funding plan
- Execution: auctions, buybacks, exchanges and swaps
- Operational risk
- Performance evaluation
- Conclusions
3:00 P.M. Using IBRD Financial Products to Implement a Debt Management Strategy, Miguel Navarro, Head of Banking Products, Financial Advisory and Banking, World Bank Treasury
4:00 p.m. COFFEE BREAK
4:15 p.m. Hands-on Exercise on Developing an Issuance Plan Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG, Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
This is a 3-day exercise. On this first day, participants are given the government funding requirements spread over the year, estimates of the market absorptive capacity, the previous year funding plan and broad guidelines on the objectives of the issuance program. On this basis, participants are requested to present a funding plan for the year. This implies deciding the timing, size and instrument type of issuance.
- Explanation of the exercise and the mechanics
- Class divided in groups
- Small group discussion
- Small group presentation
- Overall discussion
5:00 p.m. Hands-on Exercise on Developing an Issuance Plan (cont’d) Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG, Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
5:25 p.m. 5 minutes for course evaluation
6:30 p.m. WELCOME DINNER
DAY 2 - TUESDAY, JULY 25
8:45 a.m. Summary of Day 1
9:00 a.m. Instrument Choice in the Implementation of the Debt Management Strategy Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
Assessing demand opportunities, constraints and risks
- Instrument choice
- Discount and coupons
- Plain vanilla vs. structured
- Indexed instruments
- Fungibility vs. fragmentation
- Benchmark issues
- Differences and similarities in the foreign and domestic markets
10:00 a.m. Issuance Mechanisms for Government Securities, Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
Selling techniques: auctions, fixed-price, private placements, syndication retail distribution through conventional channels (commercial banks/central banks/post offices), direct sales using “new” technology, and tap sales
Auction theory in brief and practice (What does empirical evidence tells us?)
11:00 a.m. COFFEE BREAK
11:15 a.m. Buybacks and Exchanges Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
- Why DMOs buy-back their paper
- Preparing a buy-back operation
- Design and execution of debt exchanges
12:30 p.m. LUNCH (participants’ own arrangements)
1:30 p.m. Primary Dealers for Government Securities Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
Primary dealer systems
3:00 p.m. COFFEE BREAK
3:15 p.m. Hands-on Exercise on Developing an Issuance Plan (cont’d) Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG, Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
This is a 3-day exercise. On this second day, participants will be provided with additional information to continue the exercise. Preparation of funding plan and liability management transactions to meet goals established in the first day of the exercise.
5:55 p.m. 5 minutes for course evaluation
DAY 3 - WEDNESDAY, JULY 26
8:45 a.m. Summary of Day 2
9:00 a.m. Investor Base for Government Securities, Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
- Domestic investors
- Foreign investor participation
- Investor base diversification
10:15 a.m. COFFEE BREAK
10:30 a.m. Operational Risk Management in the Implementation of Debt Management Strategies Rodrigo Cabral, Senior Financial Officer, Financial Advisory and Banking, World Bank Treasury
- Sources of operational risk
- Managing operations risk in the bond execution process
- Fraud and key person risk
11:30 a.m. Overview of Derivatives and their Use by DMOs Rodrigo Cabral, Senior Financial Officer Financial Advisory and Banking, World Bank Treasury
- Purpose of derivatives
- Over-the-Counter vs. Exchange-Traded derivatives
- Forward contracts vs. futures
- Focus on Swaps
- Interest rate swap
- Cross currency swap
12:15 p.m. Examples of Derivatives Transactions: Country Case of Hungary Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
12:45 p.m. LUNCH (participants’ own arrangements)
1:45 p.m. Hands-on Exercise on Developing an Issuance Plan (cont’d) Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG, Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
This is a 3-day exercise. On this third day, groups will present their final results/implementation strategy. Followed by overall discussion.
3:00 p.m. COFFEE BREAK
3:15 p.m. Hands-on Exercise on Developing an Issuance Plan (cont’d) Indhu Raghavan, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG, Zsolt Bango, Senior Financial Sector Specialist, Finance and Markets Global Practice, WBG
This is a 3-day exercise. On this third day, groups will present their final results/implementation strategy. Followed by overall discussion.
5:25 p.m. 5 minutes for course evaluation
DAY 4 - THURSDAY, JULY 27
8:45 a.m. Summary of Day 3
9:00 a.m. Funding Mechanisms of External Debt and Insights on External Bond Issuance Rodrigo Cabral, Senior Financial Officer, Financial Advisory and Banking, World Bank Treasury
- Funding sources: IFIs, banks, international capital markets
- Marketable vs. non-marketable debt
- Assessing demand opportunities, constraints and risks
- Issuing mechanism: auction, direct placement, underwriting
- Choosing lead bank
- Book building
- Deciding the right volume
- Price vs. secondary market performance
- Promoting transparency in execution
- Targeting investors (marketing)
10:45 a.m. COFFEE BREAK
11:00 a.m. Open Discussion: Implementing Debt Management Strategies Government Bond Market Advisory Team, Finance and Markets Global Practice, WBG
This facilitated discussion will review participating countries’ experiences with topics covered thus far.
12:30 p.m. LUNCH (participants’ own arrangements)
1:30 p.m. Case Study on the Implementation of a Debt Management Strategy Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
Presentation and time to prepare proposals
3:30 p.m. COFFEE BREAK
3:45 p.m. Case Study on the Implementation of a Debt Management Strategy (cont’d) Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
Presentation and time to prepare proposals
DAY 5 - FRIDAY, JULY 28
8:45 a.m. Summary of Day 4
9:00 a.m. Discussion of Proposals for Implementing Debt Management Strategies Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
- Summary of the debt management strategy: implications for funding and liability management operations
- Brief description of execution capacity: staffing and infrastructure
- Issues on implementation
- Preliminary plan to improve the capacity for execution
10:15 a.m. COFFEE BREAK
10:30 a.m. Discussion of Proposals for Implementing Debt Management Strategies (cont’d) Anderson Caputo Silva, Lead Financial Sector Specialist, Finance and Markets Global Practice, WBG
- Summary of the debt management strategy: implications for funding and liability management operations
- Brief description of execution capacity: staffing and infrastructure
- Issues on implementation
- Preliminary plan to improve the capacity for execution
12:25 p.m. 5 minutes for course evaluation.
12:30 p.m. Workshop Wrap-up & Awarding of Certificates
