Introduction:

Discover How to Turn Your Treasury Department into a Well-Oiled Machine Through Effective Treasury Management Strategies

Course Objective of Treasury Management

This course provides you comprehensive coverage of the strategic and operational aspects of Treasury Management including:

• Gain a global picture of treasury management
• Gain insights from live cases in the market
• Gain a holistic understanding of the dealing room operations
• Understand how treasury market/products can meet the business needs and manage risks of your business
• How to effectively control your interest rate risk and currency exposure
• Assess and manage liquidity, financial markets risks, financing, and capital
• The role of treasury in financing for various types of markets and branch activities
• The role of ALCO, Policies and Procedures and limits
• The use of derivatives and structured products to achieve Treasury objectives
• Managing internal and external Treasury relationships
• Measuring and evaluating Treasury performance
• Gapping analysis and strategic decision making
• New developments in liquidity management
• Practical “hands-on” expertise for that you can immediately implement in your organization
• The role of treasury in managing market risk, cash flow and liquidity, accessing debt financing, and capital
• Short problems, case studies, and Excel ready exercises so the strategies you learn are re-inforced

Who should attend this Treasury Management

• Corporate Treasury professionals
• Treasury staff from financial institutions
• Finance staff
• CFOs
• Dealers and traders
• Treasury back office and operations staff

You should have a basic understanding of financial markets and products.

Treasury Management Course Agenda Highlights:

First Day:

THE TREASURY FUNCTION

• Overview of the Treasury Function
• Importance of Treasury
  • The role of the Treasurer
  • Treasury in the organizational structure
  • Governance: Policies and Procedures
  • Role of Audit and Risk Management
  • ALCO, Limits, and VaR
  • Cost of Capital
  • Debt/Equity Ratio
  • BIS Capital Requirements

Second day

SHORT TERM RATE RISKS

• Short Term Interest Rate Instruments
  • CD’s, CP, T-Bills, Repos, Reverses
  • Short Term Risk Management
  • Managing Floating Exposure
  • Pricing forward interest rates
  • Futures
  • Futures Margin Management
  • FRA’s vs. Futures
  • Interest Rate Options
  • OIS Swaps
• Exercises and Case Studies: Managing Short Term Rate Risk

Third-Day

MANAGING FOREIGN EXCHANGE RISKS

• Spot, Forward and FX Swap Transactions
  • Pricing Forwards and Money Market arbitrage
  • Non-deliverable forwards
  • Currency Options
  • Counterparty Risks
  • Transaction Exposure
  • Translation Exposure
  • Economic Exposure

Exercises and Case Studies: Managing Customer Transactions

INTEREST RATE RISK AND LIQUIDITY ANALYSIS

• Gap Analysis
  • Types and Uses of Gap Analysis
  • Rate Shocks
  • Cost to close
  • Liquidity Metrics
  • Simulation Approaches

Exercises and Case Studies: In small groups, you will prepare and interpret a Gap Report

fourth day

MANAGING THE RISKS OF LONG TERM SECURITIES

• Fixed Income Markets and Instruments
  • Understanding yield curves
  • Analyzing Reinvestment Risk
  • Macaulay Duration
  • Modified Duration
  • Convexity Adjustments
  • Understanding portfolio duration
  • Bond Optionality

Exercises and Case Studies: Balance sheet impact of long term securities

USING SWAPS AND RELATED PRODUCTS TO MANAGE RISKS

• Swap Pricing
  • Analyzing Swap Cash flows
  • Constructing the Discount Function
  • Hedging with Swaps
  • Swaps and the Capital Markets
  • Basis Swaps

Exercises and Case Studies: Swaps Case Study

Fifth day

TREASURY PERFORMANCE AND REGULATORY ENVIRONMENT

• BIS Liquidity recommendations
• Treasury as Profit Center
• Transfer Pricing
• Pricing Bank facilities

Group Work with Exercises and Case Studies:

• Eurodollar Futures and Gaps
• Caps and Floors
• New Issue Financing
• Cross Currency Swaps