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Debt Management Course » AF34

Debt Management Course

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DateFormatDurationFees
14 Apr - 18 Apr, 2024Live Online5 Days$2250Register
20 May - 24 May, 2024Live Online5 Days$2250Register
03 Jun - 07 Jun, 2024Live Online5 Days$2250Register
22 Jul - 26 Jul, 2024Live Online5 Days$2250Register
26 Aug - 30 Aug, 2024Live Online5 Days$2250Register
29 Sep - 03 Oct, 2024Live Online5 Days$2250Register
14 Oct - 18 Oct, 2024Live Online5 Days$2250Register
05 Nov - 07 Nov, 2024Live Online3 Days$1750Register
09 Dec - 17 Dec, 2024Live Online7 Days$3147Register
DateVenueDurationFees
08 Apr - 12 Apr, 2024Dubai5 Days$4750Register
05 May - 09 May, 2024Jeddah5 Days$4950Register
06 May - 10 May, 2024Dubai5 Days$4750Register
17 Jun - 21 Jun, 2024London5 Days$5695Register
24 Jun - 28 Jun, 2024Dubai5 Days$4750Register
08 Jul - 12 Jul, 2024Athens5 Days$5695Register
29 Jul - 02 Aug, 2024Dubai5 Days$4750Register
12 Aug - 16 Aug, 2024Dubai5 Days$4750Register
15 Sep - 19 Sep, 2024Riyadh5 Days$4950Register
16 Sep - 20 Sep, 2024Dubai5 Days$4750Register
30 Sep - 04 Oct, 2024Bratislava5 Days$5695Register
21 Oct - 25 Oct, 2024Dubai5 Days$4750Register
18 Nov - 22 Nov, 2024Dubai5 Days$4750Register
19 Nov - 21 Nov, 2024Doha3 Days$4100Register
02 Dec - 20 Dec, 2024London15 Days$14925Register
23 Dec - 27 Dec, 2024Dubai5 Days$4750Register

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Course Overview

Why is debt management important? When it comes to raising finance, a company has several sources for the acquisition of funds. These sources can be broadly categorized into debt and equity. Equity share and preference share issues are a popular way of raising funds through selling shares of the company to the general public and institutional investors.

Methods of debt financing include the issue of debentures, term loans, trade credit, etc. Within the business sphere, both debt and equity have their advantages and disadvantages. No single avenue is considered best. For this reason, no company prefers to finance its investment through a single source.

Often businesses try to find an ideal mix between debt and equity. However, this is where it gets tricky. Debt financing up to a certain magnitude can fetch some benefits for the business. Debt is a tax-deductible expense that allows businesses to reduce their tax liability.

Also, with debt financing businesses can prevent from ownership being diluted to external investors. But how much debt should be considered acceptable? If debt financing is given too much weightage, outcomes for the business can spell disaster. It is the legal obligation of the business to timely service its debt- even if it is running losses! This calls for astute debt management.

Debt management is a strategic way of structuring the debts of a business in a manner that doesn’t prove burdensome for the company. It calls for careful calculation of the debt servicing capacity of the firm and borrows accordingly.

Adept management of borrowings can become the first stepping stone towards becoming a debt-free company. It involves setting up a comprehensive debt policy that will clearly establish the comfortable level of debt within the firm without compromising its credit rating.

What various sources of credit are available to the firm? Should the business use secure debt or unsecured debt to finance its operations? How much financial leverage should be applied by the firm? What effect will debt have on the liquidity of the firm? These questions pertaining to the debt financing of the firm, call for a concrete debt management framework.

Knowledge about debt management will guide the managers to achieve optimal capital structure and develop an inclusive debt policy. It becomes crucial to do so otherwise it can negatively hamper the firm’s reputation and credit rating which in turn affects its ability to avail future credit.

This course from Zoe Talent Solutions on Debt Management aims to manoeuvre its participants towards dealing with practical corporate debt issues efficiently. The course focuses on various nuances of debt and credit management within the organization.

It deals with techniques of how debt service capacity can be evaluated, capital gearing effects, analysis and handling of credit risk, debt reduction strategies, etc. In recent times many public sector enterprises have come under observation for being debt-ridden.

Conscious efforts are required to extract them out of debt traps. In such light, it becomes even more important to grasp a deeper understanding of the subject. This course also draws a clear picture on topics like sovereign lending and bond market to gain rooted perceptiveness on how public debt affects various industries.

Course Objectives

On successful completion of the Debt Management course, participants shall be able to:

  • Understand various components of debt management
  • Know various debt instruments and their classification based on fundamental features like maturity, coupon and principal
  • Recognise different money market and capital market fixed instrument alternatives available to a firm
  • Appreciate the framework of the debt market and its segment: wholesale debt market and retail debt market. Also, gain knowledge on how their functioning affects the economic health of the state
  • Design reliable debt management strategy for their firm to fulfil their target of optimal capital structure and shareholder’s wealth maximization
  • Comprehend various strategies of debt restructuring
  • Develop negotiation tactics with moneylending institutions
  • Gain an understanding of how to bond yield curve works and yield curve analysis

Training methodology

This is a collaborative Debt Management training program and will comprise the following training approaches:

  • Interactive lecture sessions
  • Problem-solving sessions and exercises
  • Presentations
  • Case studies
  • Group discussion
  • Management games

Zoe Talent Solutions follows the ‘Do-Review-Learn-Apply’ model.

Organisational Benefits

On successful completion of the Debt Management course, participants shall be able to benefit their organization in following ways:

  • Devise a dependable debt management strategy for their organization and help it achieve its debt-free target
  • Study how sovereign lending and debt market performance affects the market and their organization
  • Identify various credit risk, interest rate risk, inflation rate risk prevalent in the market and construct a contingency plan to mitigate it
  • Negotiate on behalf of the organization for better credit terms and maintain a sound relationship with its creditors
  • Help the organization in improving their credit rating by ensuring timely payment of debt obligations
  • Select best-suited debt financing options available for the firm

Personal Benefits

Successful completion of the Debt Management course shall benefit participants in the following ways:

  • The course will allow the participants to expand their expertise in the area of financial management
  • Provide them with first-hand knowledge of the best techniques, tools and strategies for debt management
  • Be adept at the identification of risk and risk mitigation techniques
  • Develop a dynamic mindset that lets them tackle various demanding situations
  • Improve negotiation tactics that play an important role in setting up of credit terms

Who should attend?

  • Budding entrepreneurs, start-up founders
  • Financial managers, credit managers
  • Departmental heads, managers, executives
  • Financial analysts
  • Financial advisors
  • Credit insurers, brokers
  • Investors

Course Outline

Module 1: Basics of debt management

  • Debt financing
  • Effect of debt on profits
  • Benefit of debt financing
  • Capital structure decision process
  • Capital gearing
  • Financial leverage- debt ratio, interest coverage ratio
  • Strategies of debt reduction, debt restructuring, debt consolidation
  • EBIT-EPS analysis
  • Debt negotiation
  • Debt trap

Module 2: Debt market

  • Debt market segments: wholesale segment and retail segment
  • Participants in debt market
  • Secondary market for debt instruments
  • Intermediaries of debt market

Module 3: Debt instruments

  • Instrument features: maturity, coupon, principal
  • Risks involved in debt instruments- interest rate risk, inflation risk, reinvestment risk, liquidity risk
  • Instruments on the basis of modification of coupon: zero coupon, treasury scrips, floating rate bonds
  • Instruments on the basis of modification of term to maturity: callable bonds, puttable bonds,
  • Money market and capital market debt instruments
  • Debenture and their types

Module 4: Risk management and credit rating

  • Credit rating
  • Financial indicators affecting credit rating
  • Type of risks and establishing risk management framework- rollover risk, liquidity risk
  • Risk management practices

Module 5: Sovereign lending

  • Overview of sovereign lending and borrowing
  • Debt sustainability analysis
  • Debt indicators: external and fiscal indicators

Module 6: Valuation of bonds

  • Bond values and yields: value of bonds with maturity, perpetual bonds
  • Yield to maturity
  • Yield curves: normal, flat, inverted, humped
  • Flattening of yield curve
  • Theories of the term structure of interest rates- pure expectation hypothesis, liquidity preference

Module 7: Public debt policy

  • Formulation of public debt policy
  • Public debt management
  • Government borrowing policies
  • Government guarantees

Module 8: Fiscal Policy and Balance of Payment

  • Overview of balance of payment
  • BOP elements
  • Sources of imbalances
  • Fiscal policy and fiscal deficits
  • Fiscal sustainability
  • Assessing and managing fiscal risks

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