Overview

With access to more traditional finance limited, shipping companies are increasingly considering private equity and debt markets as a way to help them make key capital investments, whether meeting new emissions legislation or ballast water management controls or expanding their fleet to meet new opportunities. Likewise, many investment banks and bond traders are becoming alert to the significant opportunities in the sector.

The course aims to raise awareness of the substantial benefits and risks of equity and debt finance, to shipping companies looking for capital and to investors looking at shipping as a market with increasing accessibility and potentially strong returns on investment.

Led by Professor Nikos Nomikos of the Centre for Shipping, Trade & Finance at Cass Business School, Ship Finance Executive provides an analysis of the IPO and debt issuance process, the advantages and disadvantages of using the capital markets, underwriters and their role, credit rating agencies, and institutional investors.

Using a variety of real-life examples, course participants will learn how an IPO is made, what to look for when choosing an underwriter, how to identify an under-priced IPO before it is made public using only publicly available information, how to issue a high-yield bond and how to calculate the probability a high-yield bond will default.

Course Brochure 2020
 

Course leaders

Professor Nikos Nomikos       

Centre for Shipping, Trade & Finance

Cass Business School

Dr Nikos Papapostolou

  Cass Business School

Ship Finance Executive is led by Professor Nikos Nomikos of Cass Business School, director of the highly-respected Shipping, Trade and Finance MSc course and author of the leading reference book on shipping risk management – Shipping Derivatives and Risk Management.

Professor Nomikos holds a number of faculty positions at other universities, including Copenhagen Business School and the University of Geneva.

Dr Nikos Papapostolou has been with the Costas Grammenos Centre for Shipping, Trade and Finance since 2002. He is a Senior Lecturer in Shipping Finance, acts as the Associate Director to the Centre and he is the Director of the MSc in Shipping, Trade and Finance and Stelios Scholars Programme Lead at Cass Business School. 

"A practical overview for shipping companies and investors on how to use the equity and debt markets"

Day One

Banking and Equity Capital Markets
 

Introduction to ship finance

  • Overview of sources of finance available to shipping companies: bank debt, bonds, public and private equity, leasing and mezzanine finance
  • Current trends and developments in ship finance



Equity public off erings

  • Reasons for going public; advantages and disadvantages for shipping companies 
  • Company valuation techniques, underwriters and the IPO process 
  • Institutional investors and shipping stocks



Pricing of shipping stocks

  • Underpricing; factors aff ecting first day trading returns of shipping stocks 
  • Estimation of probability of underpricing of shipping IPOs



Practical example (excel-based): 
Selection of IPOs for asset allocation and investment purposes


Financial strength and ranking of public shipping companies

  • Choice and estimation of financial metrics; Ranking process



Practical example (excel-based):
Ranking of shipping companies and financial strength index


Initial public offering case study Practical analysis of a shipping IPO prospectus focusing on the:
deal structure; strengths and weaknesses; timing and pricing of the offering; financial strength of issuer relative to the industry average

Day Two

The high yield bond market; Risk management of real assets; Shipping investor sentiment, and shipping assets and stock investment



High-Yield Bond Issues

  • Advantages and disadvantages for shipping companies, and the issuance process
  • Role of credit rating agencies; process of assigning a credit rating (excel-based illustration)
  • Defaults and restructuring options in shipping
  • Probability of default for shipping high yield bond issues



Practical example (excel-based):
Estimation of default probability by employing readily available information 



Bank credit

  • Types of Bank Credit Facilities

 

Practical example (excel-based):
Preparing a Bank Proposal for a Shipping Term Loan

 

Portfolio Management of Shipping Loans

  • Risk models and quantitative risk analysis of shipping loans 
  • Cash fl ow analysis for shipping projects




Shipping company valuation case study Practical analysis of a company valuation case study using diff erent methodologies



Shipping sentiment, cycles and shipping assets investment

  • Quantifying shipping sentiment using market variables
  • Sentiment and shipping cycles




Practical example (excel-based): Shipping cycles prediction using shipping sentiment



Practical example (excel-based): Shipping sentiment as an investment trading tool for the sale and purchase of second-hand vessels



Shipping stocks investment

  • Passive vs. active portfolio management 
  • Index tracking and shipping stocks portfolio construction 
  • Shipping investor sentiment and stocks investment
     



Practical example (excel-based):
Formulation of trading strategies based on index tracking



Practical example (excel-based):
Sentimentbased trading strategies for shipping stocks and stock market indices

Terms and conditions

The Baltic Exchange must be in receipt of full payment prior to the day of the training course or your nominated delegate(s) may not beallowed entry to the event. Cancellations 14 days prior to the event will be refunded at 50% of the delegate fee. Cancellations within 14 days cannot be refunded. All cancellations must be received in writing.

Names of delegates may be changed at any time without charge and notification of name changes should be made in writing. Registration fees include lunch and refreshments and course notes.

Further questions

Please contact Bill Lines on: 
Tel:  +44 (0)20 3326 8460
Email:  [email protected]