Emerging Challenges for Debt Management and Investor Offices

Transcription

1 The independent world forum for central bankers, debt managers and financial supervisors Asia Training Series 2011 Emerging Challenges for Debt Management and Investor Offices 3-day intensive residential programme 6-8 December 2011 Putrajaya Marriott, Kuala Lumpur, Malaysia Course chairman: Ian Storkey Director Storkey & Co Limited Series adviser: Charles Goodhart Professor Emeritus London School of Economics Hosted by Central Banking Publications

2 Dear delegate, In , what was a financial crisis became a sovereign crisis. A sharp increase in market uncertainty surrounding sovereigns impacted spreads, ratings and issuance. More tellingly, several governments lost their reputations as reliable debtors. The increased concern over sovereign risk has dominated media discourse and industry discussion. Although much of the recent concern has focused on European markets, debt managers globally know only too well that the shifts represent a secular change that will impact issuance for decades to come. The threat of contagion, across borders and continents, has never been so palpable For debt managers, this increased pressure presents a series of technical challenges as investors become more discerning and markets less forgiving. As they look to differentiate themselves in competitive markets, debt managers are increasingly considering new techniques, new types of debt, new sources of funding and new approaches to risk management, portfolio analysis and strategic transparency. This seminar has been designed to equip debt managers with the requisite tools to meet these testing challenges. Sessions illustrate the key practical lessons for debt managers at a time of heightened attention on their performance, demonstrating where they can add value and contribute to underpinning economic recovery. The closed roundtable format allows a group of delegates maximum opportunities to benchmark their work against good practice internationally and to exchange views with their peers in an informal and confidential setting. Throughout, the emphasis is on how specific national situations require tailored solutions. This format, as more than 3,000 central bankers, debt managers and supervisors can attest, encourages delegates to quiz panelists, raise issues and discuss solutions to the specific challenges they face. We are delighted to welcome Ian Storkey, a vastly experienced practitioner in sovereign debt management, as course chairman. We look forward to welcoming you to Putrajaya Marriott in December. Yours sincerely, Robert Pringle Chairman Central Banking Publications Unforgettable learning experience in a very congenial environment.

3 Tuesday 6 December Debt Management in 2011 Emerging Challenges for Debt Management and Investor Offices December 2011 Chairman s introduction In this introductory session the chairman will outline the main themes of the seminar and will invite delegates to share their views about the most pressing debt management challenges that they are facing. Understanding pressures of the post-crisis environment Rafael Molina, Managing Partner, Newstate Partners Around the world, heavy borrowing has been encouraged by concerns over the pace of the economic recovery. As projections from the OECD Sovereign Borrowing Outlook show global government debt ratios likely to further deteriorate, the need to secure funding at a low cost and with adequately low levels of financial risk has rarely been greater. This session will consider how these challenges can be understood in the context of the post-crisis economy and how best to adapt to the ongoing pressures in the government debt and securities markets. Discussions will highlight the opportunities available to issuers with the focus throughout on providing practical solutions. Sub-national debt and cash management Given fiscal decentralization and increased autonomy provided to sub-national governments, it is important to ensure that sound practices are applied by provinces and municipalities responsible for their own debt and cash management. In this session, the speaker discusses the standards that must be achieved by regional governments and the challenges to their implementation. About the course chairman Ian Storkey is director of Storkey & Co Limited, an international management consultancy established in January 2001 to provide independent specialist advice and guidance to governments on public debt management. He has been an adviser and project manager under ADB, AusAID, Commonwealth Secretariat, DCI, DFID, NZAID, UNCTAD, UNDP, USAID and World Bank funded programmes to assist governments worldwide to build their capacity and systems in public debt and cash management. Prior to his current role, he worked for 24 years in the New Zealand Treasury, including the NZ Debt Management Office in Wellington.

4 Wednesday 7 December Performance Management and New Borrowing Strategies The changing responsibilities of DMOs Rafael Molina, Managing Partner, Newstate Partners Recent times have seen many autonomous DMOs created, yet many remain within the central bank infrastructure or as part of the Ministry of Finance. Increasingly, debt management offices are being given responsibilities for new tasks, such as managing the Treasury s cash, maintaining liquidity in domestic markets, and attracting investors by actively increasing the transparency of debt management strategy. In this session, the speaker will evaluate the changing responsibilities of DMOs against a backdrop of strained government finances and question marks over good practice in governance. Developing the middle office function Rajendra Kumar, Assistant General Manager, Reserve Bank of India The analytical functions of a middle office, if robustly established, facilitate a government s ability to meet its debt servicing obligations and to maintain its funding needs at minimal cost and with acceptable financial risks. This is done through a diligent analysis of front office activity which ensures that strategy is carried out in compliance with cost boundaries and that rollover risks are controlled through an effective risk management framework. In this session, the speaker will discuss the role played by the middle office and the resourcing needs for the function for today s debt managers. Measuring debt management performance The core task for debt managers remains to raise funds and service maturing liabilities at minimum possible cost. To this end, it is important that debt managers are able to monitor and analyse the efficiency of their work. Debt managers have a number of options in this area. The World Bank has developed DeMPA, a performance measurement tool, that assesses public debt management performance through a set of key indicators. In this session the speaker will discusses experiences of implementing DeMPA and the alternative measures available to debt managers. Improving investor relations: the case for transparency Rafael Molina, Managing Partner, Newstate Partners Successful debt management is based on investor confidence. In today s fragile markets, DMOs must be careful to maintain a clearly communicated and transparent issuance programme so as not to rile markets by appearing unpredictable. Whilst auction flexibility undoubtedly minimises costs, transparency and a clearly defined strategy will minimise uncertainty and ensure that debt managers do not incur unnecessary borrowing costs by damaging confidence. In this session, the speaker will outline a framework for a debt management programme where transparency is the watchword, maintaining market communications with both primary and secondary agents. Case study: the Investor Office approach to marketing public debt Speaker to be Confirmed The key objective of an Investor Office is to communicate the objectives and implementation strategy of the government s long-term economic programme. The effective marketing of such information can strongly assist in attracting new investment. In this session, the Investor Office approach is outlined via a case study and group discussion will focus on the role it can play in raising an issuer s profile.

5 Thursday 8 December The Future of Debt Management Emerging Challenges for Debt Management and Investor Offices December 2011 Group workshop: attracting foreign investors In this session, the chairman will invite the group to compare the strategies in place within their jurisdictions to attract foreign investors, including approaches to communications and road shows. The group will be encouraged to share their experiences, discuss what they believe can be done to improve these procedures and consider how they interact with major primary dealers. This session will be followed by a case study to further build on this important and growing area of interest. Balancing domestic and international debt Iwan Setiawan, Manager, External Debt Administration and Publication Division, Directorate for International Affairs, Bank Indonesia Bambang Satya Permana, Assistant Manager, External Debt Administration and Publication Division, Directorate for International Affairs, Bank Indonesia A key question for current debt and investment management is whether to look internally or externally for investment. Owing to discrepancies in funding and investor appetite, it can be just as fruitful to seek domestic investment as it has been in the past for countries to look internationally. This localised approach requires a strong understanding of how to incentivise investors in a world of increasingly blurred national boundaries. In this session, the speaker will discuss the merits of domestic investment vis-à-vis international investment opportunities. Closing roundtable The day and the course will conclude with a session led by the chairman drawing in the main points of the course. Delegates will be encouraged to pool their thoughts and consider lessons to take back to their home institutions. For speaker information please visit: This was the best motivation and incentive my employer could have given me this year. I have attended many workshops for central bankers. Those organised by Central Banking Publications are by far the best.

6 About the Central Banking Training Asia Series Following the world-renowned Cambridge and Windsor series, Central Banking is delighted to be hosting this new series of training courses in Malaysia this December. This new series draws on Central Banking s more than a decade of experience in hosting meetings for the official sector. As ever, all seminars are held in a closed-door roundtable setting. The focus is on finding practical, tailored ways to meet common challenges. This format, as more than 3,000 central bankers, regulators and debt managers can attest, enables participants to quiz panelists and exchange views with peers in informal, confidential surroundings. Other courses in the series include: Renminbi Internationalisation: Opportunities and Policy Implications for Central Banks The rise of the Chinese renminbi presents significant policy challenges but also opportunities for central banks. This course looks at the emergence of this new global currency from financial stability, settlement and reserve management perspectives. It considers how strategies for internationalisation are being implemented and how this is already shaping markets and economies. Throughout, an expert panel of speakers will explain emerging internationalisation policy and its impact on central bank. Effective Oversight of Mobile Payments It is widely acknowledged that the development of mobile payment technology presents tremendous opportunities for economies. Enabled mobile devices can make near real time payments a reality for populations within and even across borders. Yet many policy issues remain. How can the market be encouraged but risks managed? What role should be played by telcos and banks? Increasingly, central banks are looking at segment of the payments market, and this course will debate approaches to oversight to it. Islamic Finance: Overseeing and Developing Financial Markets As Islamic finance becomes a major worldwide financial sector, central banks increasingly interact with this growing industry. Yet, just as the industry is emerging, so too is the regulatory framework and good practice within this. This course equips participants with the tools to implement and develop effective policies to regulate and encourage these markets. The global panel of speakers combines scholars, experts, and experienced regulatory advisers. For more information please visit:

7 Booking details Course fee: $3,500 (US) Course fee includes: 2 nights accommodation, meals, refreshments, course documentation and a complimentary copy of the most recent issue of the Central Banking journal. Substitute delegates can be accepted should the registered delegate be unable to attend; please let us know prior to the event. A great opportunity to share and learn. How to book Please complete and return the registration form overleaf to: Central Banking Publications Incisive Media 20/F Tower 2 Admiralty Center 18 Harcourt Road Hong Kong telephone: fax: cs.asia@incisivemedia.com website: The venue Putrajaya Marriott IOI Resort City Sepang Utara Malaysia T: F: About Central Banking Publications Central Banking Publications events division is the leading independent organiser of public policy seminars/training courses for the official sector. Since 1997, CBP has hosted roundtable seminars and training courses for over 3,000 senior policymakers from central banks, ministries of finance and financial regulatory agencies around the world. Senior officials from more than 125 countries have attended these meetings over the past ten years.

8 Registration for Emerging Challenges for Debt Management and Investor Offices 1. Delegate details: PLEASE WRITE IN CAPITALS Mr/Mrs/Ms: Surname/Family name: First name: Job title: Organisation: Address: Postcode: Telephone: Facsimile: 1: 2: Please provide us with the direct address of the delegate and an additional address if possible. This is very important because all correspondence with delegates is by .. Course fee: $3,500 (US) 2. Payment details: Cheque: I enclose a cheque for US$ payable to Central Banking Publications Ltd. Bank transfer: Our customer service team will be in touch shortly to confirm details for a bank transfer Credit card: please charge to my Visa Mastercard American Express Card No: Cardholder name: Cardholder address (if different from above): Security Code: Expiry date: Signature: Date: I have read and agree to the terms and conditions below. Signature: Date: Terms & Conditions: A refund (less 10% administration fee) will be made if notice of cancellation is received in writing three weeks before the event. We regret that no refunds can be given after this period. In addition delegates are wholly responsible for obtaining any necessary entry visas and refunds cannot be given as a result of non-attendance arising from a failure to secure such visa. A substitute delegate is always welcome at no extra charge. The programme may change due to unforeseen circumstances, and Incisive Media reserves the right to alter the venue and/or speakers. Incisive Media accepts no responsibility for any loss or damage to property belonging to, nor for any personal injury incurred by, attendees at our conferences, whether within the conference venue or otherwise. Data protection: by registering for a Central Banking training course you will receive further information relating to this event. In addition we will send you information about our other relevant products and services which we believe will be of interest to you. If you do not wish to receive other relevant information from Incisive Media via a particular medium please click the following relevant boxes: mail phone fax Incisive Media will also allow carefully selected third parties to contact you about their products and services. If you do not wish to receive information from third parties via any of the following media please tick the relevant boxes: mail phone. Please tick if you are happy to receive relevant information from carefully selected third parties by and fax. Registered Office Haymarket House, Haymarket, London, SW1Y 4RX UK. Registered in England and Wales number VAT No. GB P