Tuesday 6th September 2011
14:00 | Opening of the Educational Seminar |
14:15 |
What is forfaiting?
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15:30 | Coffee break |
16:00 |
Why use forfaiting?
- Why do banks get involved in forfaiting?
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16:30 |
Risk assessment [Case Study]
A wide range of risks may impinge on a forfaiting transaction to a greater or lesser degree. Risks could include one, two or several of:
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18:00 | End of Day 1 |
20:00 | Seminar dinner |
Wednesday 7th September 2011
09:00 Forfaiting and emerging markets [Case Study]
Why invest in emerging markets?
Trade finance and emerging markets
Another asset class for investors
A look at what forfaiters are currently offering to buy - regions and duration
Opportunities for banks with emerging markets risk-taking capacity
Techniques [Case Study]
Basic data required
Calculating cash flows: principal & interest calculations
Bullet, amortizing and adjusted repayments
Fixed & floating interest
When to use straight discount & discount to yield
How discounts are calculated
Software - 3 systems CMG Rohirst / ZP Software / GML
10:15 Coffee break
10:30 Primary and secondary markets
Advantages and disadvantages
Documentation [Case Study]
"Introduction to the Primary Forfaiting Market"
The "IFA Guidelines"
Bills of exchange and promissory notes / typical forms / variations / holders and endorsements / legal jurisdictions / Bill of Exchange Act vs Geneva convention
Letters of credit - different types
UCP500 & e-UCP
Receivables
Avals
Bank guarantees
Transport documents bills of lading, AWB, combined transport documents
Invoices, packing lists - corroborating documentation
Payment confirmation
11:30 Settlement
Subject to documentation
Payment under reserve
Portfolio management considerations (brief overview)
Lines & limits
Trading and holding
Portfolio churning
Short, medium and long term investments
Capital considerations for banks (Brief overview)
Use of capital
Basle I & II
Risk asset weighting
Provisions and bad debts
12:30 The future
Summary of what forfaiting is about today
What forfaiting can become in future ...
Inclusiveness: pre-financing, factoring, I/cs, standard forfaiting, export credits and other capital markets instruments
Standardisation of documentation
Secure transmission of documents - Bolero
Central counterparty / clearing
Forfaiting as a flexible, versatile market to sit alongside other corporate funding sources
13:00 Buffet Lunch