Imarticus Learning Newsletter Q4, 2015

EDITION - IV Newsletter FINANCIAL SERVICES Q4, 2015

IN THIS ISSUE 03EDITORIAL 04THE OPENING BELL 08Nikhil Barshikar 10OPINION 11HARNESSING THE BENEFITS OF FINANCIAL INNOVATION 12 13Rajat BhatiaFounder & CEO, Neural CapitalTRENDINGDerivatives Market in IndiaSidharth RathPresident – Corporate Banking, Axis BankWHAT’S BREWING?ONLINE SOLUTIONS: A CASE STUDYHIGHLIGHTS FROM OUR LAST MDPUPCOMING MDP ON STRUCTURED PRODUCTSUNWINDIMARTICUS GOOD READS

EDITORIAL 03 THE OPENING BELL Nikhil Barshikar Managing Director – Imarticus LearningDear Reader, We believe, as with any investment, education is key. The more you know, the more you grow! Rajat Bhatia will beA relatively new class of financial products has caught the conducting a 2-day Management Development Programfancy of Indian investors: Structured products. Structured on Structured Products and Financial Engineering on 28thproducts have been in India for around three years, but and 29th April, 2016. This advanced workshop is aimed atthey have gained popularity over the past few months, your senior managers who have direct exposure toowing to extreme volatility in the stock market. The money structured products at work and want to gain a globalinvested in the 13 structured products currently available perspective. Please turn to Page 12 to find out more andin the market is estimated at Rs. 2,000-2,500 crore by we look forward to your whole-hearted participation.executives in companies offering such products. Whilemost firms offering structured products have targeted It is imperative that employees at all levels are constantlyhigh net-worth individuals, Indian retail banks such as upgrading their knowledge to stay ahead of the curve.ICICI Bank that usually advice clients with savings of Rs. 5- Certifications from national or international bodies like15 lakh, have also entered this space recently, making CISI or NISM are a good way for your employees to provestructured products assessable to Indian investors like their mettle. In our Online portfolio, we have recentlynever before. launched a series of online learning modules on Equity Derivatives as a way for your employees to clear the NISMStructured products have had a bad rap lately and have Series VIII certification exam. These online, self pacedbeen at the center of many a financial disaster in recent modules serve as an effective and cost-efficient way foryears. Derivatives, being leveraged products, have their you to train your entry-to-mid level employees, especiallyown implications. However, the vast majority of structured if they happen to be geographically dispersed. Read a briefproducts and their sellers do their job quietly without case study on the online solution and how it met theattracting nasty headlines. But the fact remains that they client’s requirement in this edition.are still insanely complicated and too many people whobuy them do not do their homework, and as a result, and Finally, while we end the financial year 2015, it is time wenot surprisingly, get their fingers burnt. reflect on our achievements and areas of improvement. Imarticus is now the preferred training partner to most ofIn this edition, we are honoured to have two industry the top Indian and global financial services firms, with aveterans offer their perspectives on structured products. client roster of over 75 clients. We have grownFirst, Rajat Bhatia, CEO and Founder of Neural Capital, exponentially to a talented team of 150 employees spreadshares his expertise in harnessing the power of structured across six cities in India. We launched our MDP businessproducts. Rajat’s 25+ years of exposure to global financial this year and our corporate training business has grownmarkets in New York, London, Hong Kong, Singapore, over 50% over the last year. We would like to thank you forSydney, Dubai and India gives him a unique, global your continued trust and belief in Imarticus, ourvantage point into the world of structured products. In capabilities and our potential.contrast, we have Sidharth Rath, Treasurer and Presidentat Axis Bank, share his insights into the growing derivative We are very excited about what FY 2016 will entail – amongmarket in India. Sidharth’s analysis of the product other things, we are excited about setting up a newcomposition, market potential and usage of derivatives is corporate office and an office in Delhi. As always, I looka fascinating read. We hope you find these two feature forward to hearing from you. Please do get in touch with usarticles interesting. for any requirements or suggestions to serve you better. Best Wishes Always, Nikhil Barshikar Founder & Managing Director

OPINION 04 HARNESSING THE BENEFITS OF FINANCIAL INNOVATION Rajat Bhatia Founder & CEO, Neural CapitalINTRODUCTION: GROSS MARKET VALUE OF DERIVATIVESDerivatives, structured products and financialengineering are terms synonymous with Financial US$ 2.6 US$ 15.5Innovation and familiar to anyone who has beenfollowing the developments in global finance over the TRILLION TRILLIONyears. These products have been at the center ofmany a financial disaster in recent years prompting JUNE 1998 JUNE 2015veteran Wall Street risk manager, RichardBookstaber, to write an interesting book in the year So is there a method in this madness or is it that our2007, titled “A Demon of Our Own Design - Markets, financial system is hurtling towards Armageddon?Hedge funds, and the Perils of Financial Innovation”. There must be a reason why derivatives have seenThe disasters in the financial markets caused by the secular growth from 1998 until June 2008, when thesupposedly rare, once-in-a-million year “six sigma” Great Depression was at its peak. After June 2008,events have been occurring at such regular intervals, there was a period when the derivatives contractsthat it is natural to question the prudence behind outstanding declined, but by the middle of 2011, thefinancial innovation. market had grown again.Yet, these demons of our own design have grown To fully comprehend this phenomenon, let us firstenormously. Data from the Bank for International understand 25-Sigma financial Chernobyls.Settlements shows that the total notional amount ofOTC derivatives contracts outstanding has grown FINANCIAL INNOVATION AND 25-from US$ 72 trillion in June 1998 to US$ 553 trillion in SIGMA “FINANCIAL CHERNOBYLS”:June 2015. Similarly, the Gross Market Value of thesederivative contracts outstanding has grown from US$ During the 2007-2008 financial crisis, the CFO of2.6 trillion to US$ 15.5 trillion during the same period. Goldman Sachs, David Viniar, announced in August 2007 that Goldman’s flagship GEO hedge fund had TOTAL NOTIONAL AMOUNT OF lost 27% of its value since the start of the year. Mr. OTC DERIVATIVES Viniar explained: “We were seeing things that were 25-standard deviationUS$ 72 US$ 553 moves, several days in a row.”TRILLION TRILLIONJUNE 1998 JUNE 2015 continued...

OPINION 05One commentator wryly noted: FINANCIAL ENGINEERING AND THE“That Viniar. What a comic. According to Goldman’s MA JOR GLOBAL BANKS:mathematical models, August, Year of Our Lord 2007,was a very special month. Things were happening that An analysis of the behavior of stock prices of majorwere only supposed to happen once in every 100,000 global banks and derivatives houses during the lastyears. Either that … or Goldman’s models were wrong five years paints an interesting picture. With the(Bonner, 2007). “ exception of Macquarie Group, an Australia based global investment banking and derivatives firm,To give a more down to earth comparison, on whose stock price is up 124% over the last five yearsFebruary 29, 2008, the UK National Lottery is and JP Morgan whose stock is up 45% over the samecurrently was offering a prize of £2.5m for a ticket period, all the other banks who are active incosting £1. Assuming it to be a fair bet: investment banking, financial markets and OTCn The probability of winning the lottery on any given derivatives, are in the red. It is worth noting that the S&P 500 index is up 47% in the same period and HDFC attempt is therefore 0.0000004. Bank, an India-based bank focused on consumern The probability of winning the lottery n times in a banking and working capital finance, recorded an increase in its stock price by 125%. row is therefore 0.0000004^nn The probability of a 25 sigma event is comparable 2012 2013 2014 2015 2016 to the probability of winning the lottery 21 or 22 150.00 times in a row. 100.00 But, sadly, Goldman were not alone. In 2007 alone, 50.00massive losses were announced by Bear Stearns, 0.00UBS, Merrill Lynch and Citigroup, and then there werethe earlier financial disasters – 1987, Daiwa, Barings, -50.00Long-Term Capital, the dotcoms, Russia, East Asia,and so on – and afterwards Société Générale and Clearly, the derivatives, structured products andBear Stearns again in early 2008, with rumours of financial engineering firms are facing headwinds.more yet to come. These headwinds, have been most pronounced in the Citi’s case was particularly interesting. To quote from case of two European banks:the same commentator: 1. Deutsche Bank whose stock price is down 67%“Gary Crittenden, Citi’s chief financial officer, claimed … over the last five years and which has beenthat the firm was simply a victim of unforeseen events. … rumored to be running into the reefs just likeNo mention was made of the previous five years, when Lehman Brothers did in 2008Citi was busily consolidating mortgage debt from people 2. Credit Suisse whose stock price is down 63%.who weren’t going to repay … pronouncing it ‘investmentgrade’ … mongering it to its clients … and stuffing it intoits own portfolio … while paying itself billions in fees andbonuses. No, according to the masters of the universe,downgrades by Moody’s and Fitch’s were completelyunexpected … like the eruption of Vesuvius; even the godswere caught off guard. Apparently, as of September30th, Citigroup’s subprime portfolio was worth everypenny of the $55 billion that Citi’s models said it wasworth. Then, whoa, in came one of those 25-sigmaevents. Citi was whacked by a once-in-a-blue-moon fattail.” continued...

OPINION 06LESSONS FROM THE WAVE OF 4. DELVE INTO THE NITTY GRITTY OF THEFINANCIAL INNOVATION: STRUCTURED PRODUCTS THAT YOU BUY: One of the often heard complaints in the derivatives industryPerhaps the most important lesson from the wave of in response to financial disasters is “Oh, we did notfinancial innovation is that derivatives, structured understand the products that were sold to us”. Well, itproducts and financial engineering are now an is true, that many banks have been guilty ofintrinsic part of our global financial landscape just as camouflaging the true risks in the structuredmodern information technology has moved banking products that they sell to both investors and liabilityfrom handwritten ledgers to computers to laptops managers. However, the million dollar question thatand now to smart phones. Corporate Treasurers, CFOs and Fund Managers who use derivatives fail to answer is “What about you,However, as this technology-driven financial what did you do to analyze the financial products thatinnovation, where people with PhDs in Physics and you were buying?”. Is it not the duty of those enteringMathematics transform the financial products we into innovative structured finance transactions totrade and use, becomes ubiquitous, we have no thoroughly analyze what they are buying rather thanchoice but to learn lessons from the financial rely merely on what the banks are selling?disasters and harness the benefits of financialinnovation rather than fall prey to its demons. So Some well-known banks had formed groups withwhat are these lessons? euphemistically sounding names like “Financial Risk Management or FRM group” whose goal was to1. USE LEVERAGE JUDICIOUSLY: Leverage is a double generate business by getting unsuspecting clients toedged sword. Yes, it makes for spectacular returns write naked options, often leveraged 10 times. As anwhen the markets are in sync with the positions you banker responsible for structuring and marketinghave on your books but as the London Whale disaster derivative and structured products to clients in Asiaat JP Morgan in London have shown us, leverage can Pacific, I was amazed by the kind of deals that clientscause a financial meltdown faster than we can think. had already entered into. By reverse engineering these heavily camouflaged structured products, two2. UNDERSTAND WHAT RISKS YOU HAVE: Every things became evident:business has risks embedded in its natural n The clients had no clue about the risks in theoperations. Every international airline is exposed to atriumvirate of financial risks – currency, interest rates financial products they had purchased.and commodity price risk in addition to various n The banks had leveraged up naked options tooperating risks such as safety, delays and engineeringbreakdowns. Every oil producer is exposed to both unbelievable levels.interest rate risks on its borrowings and commodityprice risk on the crude oil that it produces. Petroleum Needless to say, the end result was disastrous for therefining companies, similarly, are exposed to refinery clients with losses as high as a hundred million dollarsspread risk and electricity producers in deregulated for some manufacturing companies where theenergy markets have to deal with risks emanating operating margins are often thin.from the price of electricity they sell and from theprice risk of the feedstock they have to buy. 5. TREAT RISK MANAGEMENT AS AN ESSENTIAL RATHER THAN AS A COST CENTER: In many3. THOROUGHLY ANALYZE HOW TO MODIFY organizations, risk management is not seen as aTHOSE RISKS USING DERIVATIVES: The biggest profit center but as a cost or a burden. However, whatadvantage of a robust and liquid market for these organizations do not realize is that avoidance ofderivatives is that they enable the modification of a huge loss is essentially equivalent to making therisks present in a firm’s normal operating business to same amount of money. Even in major banks, the Riskrisks on which the firm has a clear view. Currency function was relegated to the mid-office and notswaps have enabled the firms borrowing in low considered to be front office. But in reality, managinginterest rate regimes; for example, converting Yen to risk is the flip side of taking risk. So risk managementDollar in the 1980s and 1990s. and trading are essentially the two sides of the same coin. Risk management is a function which instead of continued...

OPINION 07being seen as a cost center should be seen as a “loss ABOUT THE AUTHORreduction center”, which in my view is the same thingas a “profit center”, because a trading profit and a Rajat Bhatia has 25+ years ofreduced loss tantamount to the same thing. experience in the global financial markets in fixed income, equities,6. INVEST IN ONGOING EDUCATION IN RISK AND currencies, commodities andDERIVATIVES: In many organizations including cross-asset structured products.major banks, financial education is seen as a cost He has worked in New York, London, Hong Kong,which should be minimized rather than as an Singapore, Sydney, Dubai and India with some of theessential investment in human capital. This myopic leading investment banks and strategy consultingapproach has had—and can have—devastating firms. Rajat has worked at Citibank Global Assetconsequences, because errors resulting from work Management, London, Lehman Brothers, London,done by human capital that is not adequately trained Merrill Lynch Capital Markets, Hong Kong, Booz Allencan lead to disastrous consequences. Even at bulge & Hamilton, Sydney and Citibank, India. He has alsobracket investment banks, there have been instances consulted to McKinsey, Morgan Stanley, Neubergerof rookies or untrained derivatives sales people Berman, Alliance Bernstein, Bain & Co, Bernsteinselling dangerous structured products to investors Litowitz Berger & Grossmann and Deutsche Bank inwho are equally unaware of the risks they are taking New York, London and Singapore. As anon. One investment bank that was an exception to entrepreneur, his work on neural networks basedthis was Bankers Trust Company, who made their trading strategies at Financial Engineering LLC, annew hires in the derivatives group spend two years early stage company in Florida, resulted in thelearning about financial engineering including writing creation of a new hedge fund called Delray Capital. Hecode in C++. is currently CEO and Founder of Neural Capital.In conclusion, I can sum up by saying that with a littleeducation and a lot of persistence, it is possible toharness the power of structured products withoutgetting your fingers burnt.INTRODUCINGIMARTICUS MANAGEMENTDEVELOPMENT PROGRAMSTopic: Structured Products & Financial Engineering.Expert: Rajat BhatiaDates: 28th & 29th April, 2016

TRENDING 08 DERIVATIVES MARKET IN INDIA Sidharth Rath President – Corporate Banking, Axis BankINTRODUCTION: (EMs) taken as a whole, the split was close to 50-50. This implies that the OTC markets are, relativelyDerivatives play an important role in addressing the speaking, more important in India & other EMs.risk inherent in financial transactions. The risks traded via derivative contracts are sharply different in AEs and EMs. In AEs, around 80% of theThey are enormously useful instruments to: total derivatives turnover is accounted for by interest-n Manage risk effectively rate derivatives. In EMs, around 50% of the totaln Hedge an existing market exposure (forwards and derivatives turnover is in currency derivatives, nearly 30% in equity derivatives and interest rate derivatives futures) are relatively less significant. OTC derivatives marketn Obtain downside protection to an exposure even turnover in EMs is almost completely dominated by currency derivatives (almost 90%). These numbers while retaining upside potential (options) reflect the stark reality that exchange-rate risk is an Transform the nature of an exposure (swaps) major concern in emerging markets.n Obtain insurance against events such as default BOUQUET OF PRODUCTS IN INDIAN (credit derivatives) DERIVATIVE MARKETS:The growth of the usage of derivatives over the last Modern financial markets including markets fortwo decades has been rapid in both advanced derivatives in India are a little more than two decadeseconomies and emerging markets; in both OTC old. They are still evolving. In India, the principalcontracts and exchange-traded; and across all regulatory authority for OTC derivatives markets isunderlying classes, including interest-rate, currency, the Reserve Bank of India (RBI), while exchange-equity and credit. Given the almost 10-fold growth in traded derivatives come mainly under the purview ofIndian merchandise and services trade since 2000, the Securities Exchange Board of India (SEBI). As partthe Indian currency derivatives market has also of financial market reforms, the RBI first permittedgrown sharply. OTC trading in currency options and FX swaps in the mid-1990s (currency forwards were already beingMARKET SIZE AND PRODUCT traded), and in interest rate derivatives (mainly forward-rate agreements and interest-rate swaps)COMPOSITION: from 1999.According to the BIS report, as of December 2014, the Restrictions were placed on participants to discourage speculation. Users were required to havetotal notional outstanding in the global Over the an existing exposure that was being hedged via the derivative. In 2008, currency futures started tradingCounter (OTC) derivatives market was $630 trillion. In on the exchanges. Also, there exists non-deliverable forward (NDF)/ offshore rupee derivative market inadvanced economies (AEs) almost 62% of the total Singapore, Hong Kong, Dubai, Bahrain and otherderivatives turnover occurred on exchanges and continued...almost 38% in the OTC market. In emerging markets62% 50% 50% Exchange 38% Traded OTCAE EM

TRENDING 09offshore locations with significant trading volumes. depreciation trend against US Dollar. In FY16, theThe development of exchange traded currency Rupee has weakened by 9.92% so far (from 62.50 toderivatives is a major step towards liberalizing and 68.70). In light on recent global slowdown, rise in USdeepening the financial markets and providing Fed fund rates, the Yuan devaluation and global risk-greater price transparency. Resident individuals, off sentiments, the Rupee is likely to weaken further.firms and companies can hedge up to USD 15 million This could expose the corporates to significantthrough exchange traded currency derivatives interest rate and currency risks unless these positionsmarket without any requirement of submitting are adequately hedged.underlying documents. In case of OTC Forex market,they are permitted to book forwards up to USD 1 The firms using derivative products must have anmillion remittances for tenor up to 1 year to hedge adequate risk management framework comprisingrisk arising out of actual or anticipated losses, without an understanding of the risk and the derivatives usedproduction of underlying documents, based on self- to mitigate that risk. Also, banks offering thesedeclaration. products have an inherent responsibility to offer hedging products that are suitable and appropriateThe absence of a term money market has hampered for their client’s risk profile and risk managementmeaningful growth of the interest rate derivative framework.markets, except one product viz., the Overnight IndexSwaps (OIS), which has gathered large volumes. EXERCISING CAUTION:Trades involving Indian G-Sec Benchmark as one legof the swap transactions have shown diminished Derivatives, being highly levered instruments, haveinterest due to illiquidity in this market. In 2008,Interest Rate Futures (IRF) were revived and physically its own implications. Leverage magnifies the effect ofsettled futures contracts were introduced on 10-yearGovernment bonds. However, this product too did price moves. Sharp unfavorable price moves cannot survive beyond its infancy. After a lull, a cash-settled single bond futures contract was introduced easily spell disaster to the derivatives portfolio andin January 2014 and has been trading with reasonableliquidity. Trading in credit default swaps began in hence to the larger business entity. Indeed, theDecember 2011. Recently, an RBI panel hasrecommended the introduction of both OTC and annals of financial history are littered with stories ofexchange traded Interest Rate options with Indianbenchmarks like 10 year Government Bond, treasury corporations and financial institutions whichbills and MIBOR. collapsed when deterioration in market conditionsUSAGE: led to massive losses in the derivatives portfolio.Unhedged foreign currency exposure of corporatesremains a major risk factor for EMs like India. India Almost every major derivatives-related corporateInc’s dollar exposure continues to grow at a fast clip.Foreign currency borrowing by Indian firms has been debacle can be traced back to a combination ofincreasing. Corporates have taken advantage ofbenign global financial conditions to increase their disastrous cocktail of leverage, volatility, illiquidityoverseas borrowing and leverage. Outstanding ECBs(External Commercial Borrowings) have increased and if the risks are not properly understood andsix-fold from $31 billion in 2001 to $182 billion in2015. ECBs constitute 62% of the India’s external debt managed. For example:in FY15. < Barings Bank – 1995 < Amaranth – 2006Over the years, the Rupee has seen a continued < Metallgesellschaft - 1990s < AIG - 2008 ABOUT THE AUTHOR Sidharth Rath is the Treasurer & President – Corporate Finance of Axis Bank. He heads multiple business groups viz. Global Markets, Trade & Forex Business, Transaction Banking, Financial Institution Relationship and Capital Markets in Axis Bank.Mr Rath has over two decades of experience in the financial sector and he has been with Axis Bank for the last 14 years and was instrumental in setting up the Corporate & Project Advisory Services; Syndication & Debt Capital Markets and the Investment Banking businesses at Axis Bank.

WHAT’S BREWING? 10CASE STUDY FOR ONLINE NISMEQUITY DERIVATIVES TRAININGTHE REQUIREMENT:A leading Mumbai - based financial services company wanted to train and prep approximately 150 employees toclear the NISM (National Institute of Securities Market) Series VIII – Equity Derivatives certification examination.Since the NSE dealer terminals are only provided to valid certificate holders, this is an important examination foremployees of a stock broking firm. The trainees were scattered in 10 different metros across India, as well as newrecruits joining in at various points in time. This made training the geographically dispersed audience usingtraditional classroom training a logistical challenge with high cost implications.SOLUTION:Imarticus Learning recommended an online learning program to meet the client’s requirement. We delivered anend-to-end solution for the financial services company with Content Creation, Video Recording / Editing, Branding &White-labelling and Hosting on our LMS.The content was created by our in-house team of subject matter experts and instructional designers to ensure thecontent was relevant, accurate and highly engaging. Once the content was created, Imarticus hosted it on its LMSalong with a quiz for each module. In total, 10 hours of video output were shared with the trainees. Additionally,Imarticus conducted live Instructor-led webinars at the end of each week – this helped trainees recap their learningas well as clear any doubts with a live instructor.LEARNING PROCESS:The trainees needed to simply login to the LMS to access the self paced videos, quizzes and live instructor-ledclasses. At the onset, an Imarticus training administrator helped each employee onboard and troubleshoot anytechnology-related issues. Once that was done, employees accessed the module-wise videos via the LMS as pertheir convenience from the comfort of their homes and attended live webinar classes at the end of each week. Thismix of self-paced videos followed by a live Instructor-assisted learning intervention ensured that trainees receivedadequate hand-holding, yet freedom to learn as per their convenience.IMPACT:This online program had a far-reaching impact on the stock broking firm. Trainees were now able to learn on the gofrom their laptops, tablets and smartphones. After choosing the online training route, the stock broking firmclocked in a pass rate of 72%, over twice as much as before this training. The firm also saved on training costscompared to traditional classroom trainings, and ensured consistency in training delivery for the geographicallydispersed target audience. The average saving for the firm worked out to $100 per employee trained. Average Average Saving Per TESTIMONIALPass Rate: Employee Trained for Firm The modules were very well designed and the videos72% $100 were engaging. The webinars each weekend with the instructor were a big bonus as the instructor helped prep us for the NISM exam with many tips and tricks. - TRAINEE

WHAT’S BREWING? 11INSIGHTS OF PAST MDP:MASTERING OPERATIONALRISK MANAGEMENT Imarticus Learning held an exclusive Management Development Program on Operational Risk Management in Mumbai on 21st & 22nd January, 2016 for senior Ops Risk managers. KEY < Ops risk in context < Regulatory environment AREAS < Performing the Ops risk function < Metrics & technologyCOVERED < Managing reputation risk < Measurement & reporting < Identification techniques < Best practices and wrap up EXPERT PROFILE: DR RANJAN CHAKRAVARTY < 22 years managerial and risk management experience across global companies < Basel II and III implementation pioneer < Alumnus of Columbia Business School ATTENDEES FROM TESTIMONIALIt has been a wonderful experience for me. The practical experience and expertise that he [the trainer]shared was very useful and he has enthralled us with his inputs. The Management DevelopmentProgrammes by Imarticus has filled a vacuum for professional development in very key areas of Banking and Financial Services. - ASSOCIATE DIRECTOR & HEAD BUSINESS TRAINING, COGNIZANTWant a Repeat of the Same?Imarticus Learning can arrange for the same workshop to be conducted specifically targeted to your organizational needs& audience profile and tailor the training to your specific needs.

WHAT’S BREWING? NEW 12 UPCOMING MDP STRUCTURED PRODUCTS & FINANCIAL ENGINEERING BLOCK THE DATES 28th and 29th April, 2016This 2-day workshop is designed to deliver a LEARNING OUTCOMES practical understanding of the global marketplace for structured products and < Use derivatives in innovative ways.evaluate their benefits and risks. < Understand execution of tax arbitrages usingParticipants will obtain a detailed understanding credit derivatives.of the elements involved in the design and < Develop arbitrage driven new bond issue tostructuring of both investor side as well as liabilityside structured products. reduce borrowing costs. < Simplify the pricing of complex structured Introduction to Structured Financial Products products. < Identify the risks and perils of financial Role of CDOs in Successful2008 Financial Crisis Practical Applications innovation. < Understand why structured products cause losses. EXPERT PROFILE Securitization COVERAGE Pricing Techniques& Collateralized for Derivatives &Debt Obligations Structured Products Application of Practical Applications RA JAT BHATIA Complex of Complex Structured Deals < 25+ years of experience in global financialCredit Derivatives markets Fundamentals of Credit Derivatives < Expert in delivering application oriented training workshops on Forex, Commodity,WHO SHOULD ATTEND? Fixed Income, Equity Markets, Derivatives, Swaps, Alternative Investments, and Portfolio Corporate and Investment Bankers, Management CFOs, Treasurers and Finance Managers, Asset Managers, Hedge < Worked at Citibank Global Asset Management, Fund Managers, Proprietary Traders, London, Lehman Brothers, London, Merrill and Regulators Lynch Capital Markets, Hong Kong, Booz Allen & Hamilton, Sydney and Citibank, India. < Founder & CEO of Neural Capital < Alumnus of Columbia University, New York CityWHEN: 28th and 29th April, 2016; 9 AM to 6 PM WHERE: Sofitel Hotel, Bandra East, Mumbai EMAIL: [email protected]

UNWIND 13 GOOD READS Lords of Finance: The Bankers Who Broke the World - Liaquat Ahamed Liaquat Ahamed’s Lords of Finance, exposes the decisions made by some central bankers that caused the economic meltdown, the effects of which set the stage for World War II and resonated for decades. Lords of Finance is a powerful reminder of the massive impact of the decisions of central bankers, their shortcomings, and the dreadful human consequences that can occur when they are wrong. The Alchemists: Three Central Bankers & a World on Fire - Neil Irwin Three men, Ben Bernanke, Mervyn King and Jean-Claude Trichet, suddenly find themselves to be the most powerful people in the world. In August 2007, they were elected to public office, being leaders of the three most important central banks. In The Alchemists, Neil Irwin recounts the true story of the central bankers’ role in the world economy that we have been unaware of. Ultimate, revelatory, and enthralling, we are told of the secret of where the money comes from—and where it may will be going. Tower of Basel: The Shadowy History of the Secret Bank that Runs the World - Adam LeBor Adam LeBor’s Tower of Basel is the chief investigative history of the world's most secretive global financial institution. This book is based on extensive archival research and in-depth interviews with key decision-makers like, Paul Volcker and Sir Mervyn King, in Switzerland, Britain, and the United States. Tower of Basel tells the inside story of the Bank for International Settlements (BIS): the central bankers' own bank. Structuring Venture Capital, Private Equity & Entrepreneurial Transactions - Jack S. Levin, Donald E. Rocap Jack S. Levin and Donald E. Rocap give a vibrant, step-by-step approach which educates you on how you can benefit your client with the tax, legal, and economic structuring consequences. This book is a hands-on resource showing the distribution of tax burden in your client's favor, maximizing returns on successful transactions, controlling future rights to exit a profitable investment, turning each transaction into a winning venture. The Masters of Private Equity and Venture Capital - Robert Finkel, David Greising The Masters of Private Equity and Venture Capital is a book that is based on original interviews conducted by the authors on the subjects that matter the most to the high- level investor, such as; selecting and working with management, pioneering new markets, adding value through operational improvements, applying private equity principles to non-profits, and much more. Pioneers of the industry share their wisdom about all you need to know about managing your investments.

ABOUT IMARTICUS LEARNING 14Imarticus Learning is formed to bridge the gap between Academia and the industry. The firm provides a rangeof Corporate Solutions designed to assist firms in meeting their skillset requirements.Headquartered in Mumbai, Imarticus has delivery capabilities across India with dedicated centres at Mumbai,Bangalore, Chennai, and satellite centres at Pune and Jaipur. HIGHLIGHTS Training and content delivery Preferred sourcing and Range of customized delivery capability, across the areas of corporate training delivery methods such as instructor ledInvestment Banking, Finance & partner for leading Global training, e-learning, workshops Treasury, Capital Markets Banks, Consulting, KPO, and seminars for optimal Operations, Business Technology and Analytics training effectiveness. Analytics, Technology and firms. Consulting.CONTACT US CORPORATE TRAININGHEAD OFFICE 2-10 day programs targetedImarticus Learning Pvt. Ltd. towards employee skill5th floor, Raaj Chambers, developmentOld Nagardas Road, Andheri (E),Mumbai - 400 069 AGILE HIRINGTel: 022-40792314 / 40792315 Ready Placements at No CostBANGALORE TEMPINGImarticus Learning Pvt. Ltd.No.143, B 1st Floor, 6-9 month resource60 feet road, 5th Block, staffing in InvestmentKoramangala Bangalore - 560 095 Banking OperationsTel: 080-45129914 / 45129924 SOURCING TOMob: +91-9008668548 / 8971729953 PLACEMENTCHENNAI 2-3 month programs targeted towards onboardingImarticus Learning Pvt. Ltd.2nd floor, East West Centre, VISIT US: www.imarticus.org/corporate128, Nelson Manickam Road, EMAIL US: [email protected] – 600 029Tel: 044-43558466 / 45642104Mob: +91-9789879741DELHIImarticus Learning Pvt. Ltd.Plot No.10, Dakshin Marg,DLF Phase-II,Gurgaon - 122008

Every morning in Africa, a Gazelle wakes up. It knows it must run faster than the fastest Lion or it will get killed. Every morning, a Lion wakes up. It knows it must outrun the slowest Gazelle or it will starve to death.“When the sun comes up, You’d better be running.