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