Introduction:

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

Objective

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

Target Audience

• 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.

Outlines

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