Mastering Liability Portfolio Management in the Public Sector

This DIXONTECH training explores modern frameworks and analytical approaches to Liability Portfolio Management in the public sector, combining risk assessment, cost optimization, and debt sustainability strategies. Delegates gain a solid understanding of managing government debt portfolios, financial instruments, and macro fiscal linkages to improve decision-making and long-term financial resilience.

TRAINING TOPICS

• Public sector debt portfolio fundamentals
• Liability structure and composition analysis
• Risk measurement and management tools
• Cost and risk tradeoff frameworks
• Debt sustainability and fiscal strategies
• Performance monitoring and policy evaluation

BY THE END OF THIS TRAINING COURSE, DELEGATES WILL BE ABLE TO:

•  Apply key techniques in liability portfolio management
•  Optimize public debt structure and sustainability
•  Evaluate cost–risk tradeoffs effectively
•  Use analytical tools for policy decision-making
•  Assess fiscal exposure and risk scenarios
•  Develop strategies for liability diversification
•  Monitor and report debt performance
•  Align portfolio management with fiscal objectives

TRAINING IS TAILORED TO

•  Professionals in government finance and treasury
•  Central bank analysts and debt managers
•  Fiscal policy and macroeconomic specialists
•  Public sector investment officers
•  Financial risk and compliance managers
•  Development finance professionals
•  Economists in public institutions
•  Strategic planning and budgeting teams

TRAINING METHODOLOGY

This DIXONTECH course combines theory with practical applications through case studies, simulation exercises, and group discussions. Participants will analyze real-world public debt portfolios, apply risk management tools, and engage in interactive sessions to strengthen analytical, strategic, and decision-making skills in liability management.

DAY 1

UNDERSTANDING PUBLIC SECTOR LIABILITIES AND PORTFOLIO FRAMEWORKS

•  Components of public sector debt structure
•  Legal and institutional framework overview
•  Classification of liabilities and instruments
•  Roles of ministries, treasuries, and agencies
•  Key financial and risk concepts in context
•  Public debt recording and reporting practices
•  Benchmark indicators and fiscal linkages
•  Overview of global best practices

DAY 2

MEASURING AND MANAGING PORTFOLIO RISK

•  Identifying sources of debt portfolio risk
•  Interest rate and exchange rate exposures
•  Liquidity and refinancing risk management
•  Scenario and stress testing techniques
•  Risk metrics for portfolio monitoring
•  Duration, convexity, and value at risk models
•  Application of analytical tools in Excel
•  Interpreting and reporting risk results

DAY 3

COST–RISK OPTIMIZATION AND STRATEGIC BENCHMARKS

•  Concept of strategic portfolio benchmarks
•  Selecting optimal maturity profiles
•  Assessing fixed vs. floating debt structures
•  Tradeoffs between cost and risk targets
•  Portfolio optimization models and simulations
•  Using front, middle, and back-office coordination
•  Integrating cash management and liabilities
•  Reviewing country examples of benchmark setting

DAY 4

DEBT SUSTAINABILITY AND POLICY INTEGRATION

•  Frameworks for assessing debt sustainability
•  Fiscal and macroeconomic coordination models
•  Domestic vs. external debt management
•  Contingent liabilities and fiscal risks
•  Evaluating guarantees and SOE exposures
•  Tools for medium-term debt strategies
•  Linking liability management to fiscal rules
•  IMF and World Bank approaches to sustainability

DAY 5

PERFORMANCE EVALUATION, REPORTING, AND CASE STUDIES

• Indicators of debt management performance
• Building effective debt management reports
• Key performance indicators and metrics
• Country case studies and best practices
• Institutional capacity building for governments
• Policy recommendations and decision frameworks
• Simulation of liability management scenarios
• Final workshop: developing a model strategy