Dear Delegate,

HOW TO DELIVER EFFICIENT PUBLIC DEBT MANAGEMENT

Right now, burgeoning government deficits and intense competition among issuers, due to financial liberalisation, mean that efficient public debt management has become crucial to the broad economic strategy of many governments around the world.

Debt management must not only be efficient, professional and sophisticated, but debt managers also need to be responsive to market demands. They need to minimise not only the cost but also the risk of their borrowing in a turbulent world.

The problem is: how to reconcile all these requirements?

For emerging and developing markets, yet another consideration has to be taken into account: financial market development.

A well-designed debt strategy is essential for encouraging the development of well-functioning domestic financial markets.

This course will be led by experts familiar with best practice and cutting edge techniques in debt management in emerging markets as well as in OECD countries. It is designed specifically to help delegates meet the practical challenges facing debt managers in countries with less developed financial markets. It will suggest appropriate strategies for dealing with them.

It will also tackle other topical issues including:

• the appropriate organisation and responsibilities of the debt office;
• its relationships with other agencies, particularly the central bank;
• the role of intermediaries.

The course addresses three core areas:

Challenges, trends and emerging best practice in debt management
What are the major challenges facing debt managers around the world and how are they being dealt with? Is there emerging best practice for debt managers?

Integrated strategy for debt management
What are appropriate and feasible strategic objectives for debt managers? Functions that are associated with debt management – who should be responsible and how can cooperation be achieved?

Instruments and techniques for efficient debt management
Comparisons of instruments and issuance techniques, responding effectively to market needs, the role of private financial institutions.

Expert presenters will lead discussions in an informal and confidential roundtable format, allowing delegates the maximum opportunity to learn from each other and to discuss their questions and experiences.

Central Banking Publications has organised conferences for public officials concerned with public policy towards financial markets for the past eight years. More than 1,000 senior delegates have attended these residential courses, including governors and senior directors of many central banks and financial regulatory agencies. For the first time, Central Banking is now offering a new course on debt management.

Delegates will be confined exclusively to officials from the public sector.
Who should attend: Government debt managers, finance ministry officials involved in debt management strategies and planning, central bank public debt and market operations personnel, central bank and finance ministry economists involved in public finance.

Yours sincerely,

William Clarke, CBE, PhD
Chairman, Central Banking Publications Ltd

Establishing the strategic objectives for debt managers
Mike Williams
Independent consultant on debt and cash management

Debt managers need to consider what their strategic objectives should be, beyond simply minimising the cost and risk of borrowing. What macroeconomic conditions and risks should be factored into debt management strategies, and how, if at all, do the responsibilities of the debt office extend beyond just financing public borrowing?

Meeting the market’s needs
Henrietta Podd
Managing Director of International Bond Origination, RBC Capital Markets

Debt managers occupy an influential position in domestic financial markets, and their decisions have important implications for market competitiveness, stability and development. This session considers what markets need from debt managers, and how the impact on markets can be incorporated into a debt strategy.

Participant challenges and experiences

This session will invite delegates to discuss the main challenges their organisations face with the rest of the group, drawing on the wide range of expertise and experiences present.

The evolving nature of debt management strategy and analysis
Lars Boman
Deputy Head of Portfolio Management, Swedish National Debt Office

As debt issuance becomes more competitive and debt managers come under pressure to reduce borrowing costs, more active debt management strategies can help respond to these challenges. The speaker will consider how Sweden’s strategy has recently evolved to become more active, and will evaluate the performance and appropriateness of alternative strategies.

Effective measurement of debt management performance
Nicholas Sagnes
Head of Operational Research, Agence France Trésor

Benchmarking and performance measurements are necessary to ensure accountability and that debt is being well managed. But are the performance measures appropriate and relevant, and do they actually measure what is intended? This session will discuss the construction of performance measurements and the need to be cautious about the built-in assumptions these contain.

Issuance choices
Arnaud Mares
Head of Portfolio Strategy, UK Debt Management Office

How should debt managers go about making issuance choices? This session considers the various alternatives available (internal vs external, instrument type, issuance technique etc), their pros and cons, and how a debt manager should set priorities and make decisions.

Independence and relationships with other agencies
Jean-Luc Steylaers
Deputy Director, Belgian Debt Agency

Many countries have set up autonomous debt offices, but in others the function remains within the central bank or ministry of finance. This session will consider the implications of where the debt function is located, and under what circumstances the move towards a separate office is desirable. It will also consider the relationships that the debt manager must have with other agencies and how these can be structured.

Debt management and the central bank
Lisbeth Zacho
Deputy Head of Government Debt Management, Danmarks Nationalbank

Important linkages between debt management and central bank activities mean that effective coordination and communication between the two agencies is essential. This session will consider how to manage the relationship, and what problems can potentially arise. The speaker will also address issues arising from having the central bank act as debt manager, and best practice for managing such situations.
 

Communicating with markets and credit rating agencies
David Heslam
Associate Director, Sovereign Rating Group, Fitch Ratings

Debt managers can no longer rely on a natural market for their debt, and, as a result, need to engage in effective marketing and communication on both the national and international level. This session will look at how debt managers can raise awareness of their products and communicate more effectively, and particularly the role that credit rating agencies can play.

Interaction with the private sector
Euan Harkness
Vice Chairman, Barclays Capital and Chairman of the Gilt-Edged Market Makers Association

Maintaining good relations with investors and other counterparties in the private sector is essential for a successful debt management strategy. The debt manager must be aware of shifting demand for their products, as well as keeping the market informed as to its own plans. This session, led by the chairman of the body which represents market-makers in UK government debt, will consider how to manage such relationships, and how improved consultation with the markets can make debt management more efficient.

Private sector firms can offer a wealth of experience and advice in debt management, and constitute an important potential source of assistance for public debt managers. This session will also look at what services they can provide, and will discuss where they can provide the greatest value, as well as which areas it is more important to develop in-house capabilities for.

Summary and conclusions
Mike Williams