Executive Masterclass - Modern Sovereign Debt Risk Management: A Systemic Approach


October 2nd 2017 to October 3rd 2017
Time: 9.30am - 5.30pm on both days. The masterclass will be followed by an evening reception on day 1.
Venue: LSE
Tutors: Professor Jeffrey Chwieroth (LSE), Dr. Jean-Pierre Zigrand (LSE) and Dr João Moreira Rato (Oliver Wyman, Universidade Nova de Lisboa and LSE)

See Masterclass flyer

Effective sovereign debt management requires achieving funding, risk, and cost objectives while often adapting to rapidly changing market circumstances. A key challenge then for sovereign debt managers is to establish and execute a strategy that meets the sovereign´s objectives in a way that is resilient to fluctuation in market sentiment and in other risk factors. This requires a holistic understanding of modern asset, liability and risk management frameworks where balance sheets are interwoven and where explicit and implicit guarantees affect the financing options. Furthermore, a good understanding of sovereign debt management requires a solid knowledge of debt restructuring strategies as well as an appreciation of how regulation, banking crises, and politics relate to and complicate the task of keeping a consistent and predictable debt management programme.

For investors and bank risk officers concerned with the measure of sovereign counterparty risk, this course will provide the instruments needed to evaluate different sovereign debt strategies, giving them the capacity to react and adapt their portfolios swiftly to changes in the market environment and to evaluate the sensitivity of their investments to different non-market risk factors.

Course Description
This course provides participants with the opportunity to rigorously analyse and investigate the most critical issues and challenges that emerge from public debt management and evaluate a sovereign’s vulnerability to international financial shocks. These issues and challenges, if poorly addressed and understood, threaten the capacity to maintain a consistent and sustainable debt management programme. Participants will in a short period of time develop a coherent approach for thinking about the many disparate aspects of effective sovereign debt management as well as gain new analytical, conceptual and practical (including simulations) tools for addressing factors that complicate debt sustainability in a rapidly changing global financial environment.
Over two days, participants will gain an authoritative overview of the critical frameworks, strategies, institutions, and dynamics that shape modern sovereign debt management.
This Masterclass takes a highly interactive approach that combines lectures, case studies, exercises, spreadsheet modelling, classroom discussion and group work.
Course Leaders
The course is led by Professor Jeffrey Chwieroth, Dr Jean-Pierre Zigrand and Dr João Moreira Rato.
Chwieroth is Professor of International Political Economy in the Department of International Relations and Research Associate in the Systemic Risk Centre at the LSE. His research interests are in the international political economy of money and finance, specifically the political consequences of financial crises, sovereign wealth funds, financial globalisation, the International Monetary Fund, emerging markets, and economic norms and ideas.
Zigrand is Co-Director of the Systemic Risk Centre and Associate Professor of Finance in the Department of Finance. Dr Zigrand is the director of the LSE MSc Finance executive programme. He has acted a a consultant to private sector financial institutions, to the Luxembourgish Central Bank as well as to regulatory bodies. He has been a Lead Expert to the UK Foresight Team on the Future of Computer Trading. His research interests are in the areas of systemic risk and asset pricing.
Dr João Moreira Rato has led the Portuguese Debt Management Office in its successful return to the markets following the request for a Troika led assistance program. He is currently advising Oliver Wyman on the set up of a Middle Eastern Debt Management Office and he is a visiting professor at Universidade Nova de Lisboa and Research Associate at the LSE Systemic Risk Centre.
Masterclass Benefits

• Discover a more holistic approach to a sovereign’s balance sheet.
• Build a workable sovereign balance sheet including the relevant assets and liabilities, especially when considering the specificities of natural resource rich countries.
• Understand the impact of contingent liabilities in a sovereign’s balance sheet and financing needs.
• Achieve a deep understanding of the risks implicit in public debt management and investment.
• Assess ways to measure the different risk factors in play in sovereign debt.
• Master the trade-offs underlying a debt management strategy.
• Evaluate the sustainability of different alternative public debt strategies.
• Realise the importance of liquidity of secondary debt markets for sovereign debt management and its interaction with different primary markets mechanisms.
• Examine the extent to which particular instruments and strategies facilitate successful sovereign debt restructuring and resolution.
• Develop insight into how banking crises impact debt sustainability, and how unsustainable debt stocks may limit optimal resolution of financial stress.

This Masterclass is suitable for:
• Professionals in the areas of sovereign, corporate, capital markets, and international banking
• Financial market analysts, practitioners, and strategists
• Traders, asset and portfolio managers, especially debt and credit
• Risk managers in financial and non-financial institutions
• Regulators, supervisors, and financial and economic policymakers
• Professionals in non-financial institutions seeking to advance their understanding of current risks and challenges facing the global financial system
• Consultants
Please register by completing the online form.
Course fee: £3000
Refund Policy
Cancellations can be accepted up to 14 days prior to the event. Thereafter, no refund is available.

For any enquiries please email src@lse.ac.uk