Debt Management Course: Best Practice

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
Course Outline
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
Debt market
• Debt market segments: wholesale segment and retail segment
• Participants in debt market
• Secondary market for debt instruments
• Intermediaries of debt market
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
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
Sovereign lending
• Overview of sovereign lending and borrowing
• Debt sustainability analysis
• Debt indicators: external and fiscal indicators
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
Public debt policy
• Formulation of public debt policy
• Public debt management
• Government borrowing policies
• Government guarantees
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

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:

1ST BATCH:        3rd – 6th Feb, 2026       

2ND BATCH:       26th – 29th May, 2026 

3RD BATCH:       22nd – 25th Sep, 2026