Domestic Debt Market Development Training Course

Participants can define debt management objectives, governance arrangements and decision rights for domestic borrowing.

• Statutory debt-management objective: meet financing needs at prudent cost-risk
• Governance roles for strategy approval, execution, reporting and audit
• Front, middle and back office segregation of duties
• Debt management committee terms of reference and escalation thresholds
• Fiscal agent agreements governing central-bank operational support
• Conflict controls between debt issuance and monetary policy operations
• Public reporting practices for debt operations and contingent liabilities

Participants can analyse a domestic debt portfolio and identify material cost and risk exposures.

• Portfolio composition by instrument, currency, holder, maturity and interest basis
• Average time to maturity and average time to refixing
• Refinancing profile analysis using redemption buckets and maturity concentration
• Interest-rate exposure under fixed, floating and inflation-linked instruments
• Cost-at-risk and debt-service sensitivity under market shock scenarios
• Investor concentration measures using holdings data and Herfindahl-Hirschman Index
• Contingent liabilities and guaranteed debt incorporated into fiscal risk analysis

Participants can prepare a medium-term debt strategy that compares feasible funding portfolios.

• IMF–World Bank MTDS analytical framework and baseline debt portfolio
• Macroeconomic assumptions for inflation, exchange rates, rates and financing needs
• Alternative borrowing strategies defined through instrument and maturity choices
• Cost-risk analysis under interest-rate, growth and exchange-rate shocks
• Strategic benchmarks, risk indicators and approved tolerance ranges
• Choosing a preferred strategy from affordability and vulnerability evidence
• Translating strategy decisions into annual borrowing and issuance parameters

Participants can link government cash forecasting to short-term borrowing and issuance decisions.

• Treasury single account design and visibility over government cash balances
• Rolling cash forecasts built from revenue, payroll and expenditure schedules
• Financing-gap calculation from fiscal flows, redemptions and cash buffers
• Cash buffer policy balancing liquidity protection against carry costs
• Treasury bills, deposits and repos for short-term cash management
• Coordination protocols between cash managers, debt managers and central banks
• Unexpected cash shocks and contingency funding decision rules

Participants can select domestic debt instruments suited to issuer objectives and investor demand.

• Treasury bills, fixed-rate bonds, floating-rate notes and inflation-linked bonds
• Instrument choice against refinancing, interest-rate and inflation risk objectives
• Maturity points supporting benchmark formation and yield-curve continuity
• Coupon frequency, day-count conventions and redemption structures
• Reopening policy for building sufficiently large benchmark issues
• Retail savings instruments and their cost, access and distribution trade-offs
• Islamic government securities structures: sukuk asset and cash-flow considerations

Participants can build an annual domestic borrowing plan and transparent issuance calendar.

• Gross financing requirement derived from deficit, maturities and cash policy
• Domestic and external funding split assessed against strategic constraints
• Annual issuance calendar with maturities, volumes, dates and reopening decisions
• Quarterly issuance adjustments triggered by cash forecasts and market conditions
• Benchmark build-up targets matched to projected investor absorption capacity
• Publication standards for borrowing plans and auction calendars
• Contingency issuance options for disrupted markets and funding shortfalls

Participants can select auction methods and manage an issuance process from announcement to allotment.

• Competitive and non-competitive bids within government securities auctions
• Uniform-price versus discriminatory-price auction allocation methods
• Bid submission rules, cut-off yields and allotment algorithms
• Auction announcements specifying security terms, volume and settlement date
• Tail, bid-to-cover ratio and dispersion as auction outcome indicators
• Greenshoe options and discretion policies for accepted volumes
• Auction cancellation criteria, communication protocols and market-confidence considerations

Participants can design primary dealer obligations, privileges and performance monitoring arrangements.

• Primary dealer objectives: distribution, market making and price discovery
• Eligibility criteria covering capital, systems, expertise and governance
• Obligations for auction participation, two-way quotes and reporting
• Privileges including exclusive auctions, securities lending and information access
• Performance scorecards using participation, quoting and turnover metrics
• Sanctions, suspension and termination procedures for persistent underperformance
• Avoiding dealer concentration and conflicts in primary-market allocation

Participants can assess investor demand and formulate measures to broaden the domestic investor base.

• Investor segmentation across banks, pension funds, insurers, funds and households
• Liability structures shaping institutional investor maturity and liquidity preferences
• Foreign investor participation: benefits, volatility channels and market-access requirements
• Investor relations programmes using calendars, presentations and regular data releases
• Tax treatment effects on investor returns and instrument demand
• Prudential rules influencing banks' government securities holdings
• Demand surveys identifying barriers to participation and preferred instruments

Participants can derive and interpret yield-curve information for issuance and risk decisions.

• Clean price, dirty price, accrued interest and bond yield conventions
• Bootstrapping zero-coupon curves from government securities market prices
• Par yield curves, spot curves and forward-rate interpretation
• Interpolation choices between liquid benchmark maturity points
• Term premium, liquidity premium and credit-risk components of yields
• Curve movements: parallel shifts, steepening, flattening and twists
• Using yield-curve evidence to time maturities without speculative trading

Participants can diagnose secondary-market liquidity and select measures that improve tradability.

• Liquidity measures: turnover ratio, bid-ask spread, quote depth and trade frequency
• Benchmark issue size and reopening policies supporting secondary-market liquidity
• Buyback and switch operations for reducing fragmented outstanding lines
• Securities lending arrangements that reduce settlement fails and short-selling constraints
• Repo markets supporting dealer inventory finance and collateral circulation
• Electronic trading platforms, dealer voice markets and trade reporting
• Market-maker incentives balanced against transparent competition and conduct controls

Participants can assess post-trade arrangements and identify operational risks in securities settlement.

• Trade lifecycle from execution, confirmation and matching through settlement
• Delivery-versus-payment models and principal-risk mitigation
• Central securities depository functions for immobilisation, transfer and custody
• Real-time gross settlement links for cash-leg finality
• Settlement cycles, fails management and penalty arrangements
• Legal certainty for book-entry securities, collateral and netting
• Business continuity controls for payment, depository and trading infrastructure

Participants can evaluate repo and collateral-market arrangements that support liquidity and monetary operations.

• Repurchase agreements: sale, repurchase price, haircut and maturity mechanics
• GMRA concepts for close-out netting and collateral substitution
• Eligible collateral frameworks and valuation haircuts by asset risk
• Margin calls, mark-to-market processes and collateral concentration limits
• Central bank standing facilities and open-market repo operations
• Securities lending structures for market making and settlement efficiency
• Legal opinions supporting enforceable collateral and netting arrangements

Participants can specify data, disclosure and infrastructure improvements for credible domestic debt markets.

• Reference data for securities identifiers, terms, prices and outstanding amounts
• Auction result disclosures: bids, allotments, yields and participant categories
• Debt statistical bulletins using maturity, instrument and holder classifications
• Public debt databases reconciled with fiscal, monetary and settlement records
• Price dissemination standards supporting transparent valuation and investor confidence
• Data governance for validation, version control and publication approvals
• DeMPA indicators for recording, reporting and operational risk management

Participants can identify regulatory and conduct controls needed for orderly government securities markets.

• Licensing and prudential oversight of dealers, brokers and custodians
• Market abuse controls covering manipulation, insider dealing and misleading orders
• Disclosure rules for issuer information, material events and auction terms
• Know-your-customer and anti-money-laundering controls within securities distribution
• Suitability requirements for retail government securities products
• Surveillance alerts based on pricing anomalies, concentration and unusual trading
• Enforcement coordination among securities regulators, central banks and debt offices

Participants can prepare issuance and communication responses to domestic debt market stress.

• Stress scenarios covering failed auctions, rate shocks and investor withdrawals
• Liquidity contingency plans for rollover pressure and settlement disruption
• Issuance flexibility through bill programmes, syndications and private placements
• Central-bank backstops: mandate limits, transparency and fiscal-risk implications
• Investor communication during volatility, policy changes and rating actions
• Debt buybacks, exchanges and liability-management operations under stressed conditions
• Post-event reviews converting crisis evidence into procedural improvements

Participants can build, review and present a complete domestic debt market development dossier with prioritised reforms.

• Market diagnostic using portfolio, investor, auction and liquidity evidence
• Medium-term debt strategy assumptions, scenarios and risk tolerance indicators
• Annual borrowing plan, issuance calendar and benchmark development targets
• Auction, dealer and investor-relations improvements supported by measurable indicators
• Infrastructure, legal and data reforms sequenced by dependencies and ownership
• Implementation roadmap with milestones, resources, governance and risk controls
• Peer review and executive presentation of complete development dossiers