The course will demonstrate cash treasury products and derivative products, including:

• Description and definition of each product
• How the product price is arrived at
• Market jargon and terminology
• Product applications and uses
• Risk factors of using products
• Key product strategies
• Product marketing and selling characteristics
• Product marketing case studies and role-play

Course overview

Sound treasury management ultilises the right financial products to manage risk, capitalize cashflow and minimise debt financing. This 4-day programme will therefore provide you a comprehensive understanding of the products used by banks and corporate treasuries in today's successful treasury management, an insight into the best borrowing sources and investments and when and how to use them, together with an insight into the essential processes to the smooth day-to-day running of your insitution's finances. The course also provides an overview of the structure and key functions of the treasury and how to implement a robust risk management strategy to weather today's tough market conditions.

Methodology

• The programme uses traditional tried and tested techniques including lectures, worked examples, realistic case studies and role-plays.
• The programme is designed to show the products in a highly practical way, without overcomplication and with clear illustrations so that participants may really understand key concepts.
• Comprehensive product notes are provided for future reference.

Day 1


Registration commences at 8:30
Programme runs from 9:00 - 5:00 daily

Cash market products and money market products
 A review of what money markets are Time deposits
 

• As investments
•  As short-term funding
•  Placing and recovery
•  Domestic and off-shore

Certificates of deposit
 

• As investments
•  Benefits in liquidity management
•  Enhancing returns by trading

Bill of exchange, promissory notes and commercial paper

•  As sources of short-term finance
•  As investments
•  Operating clean acceptances
•  Operating documentary acceptances
•  Evaluating costs

 Sale and repurchase agreements 

• Uses in raising cash
•  Uses in reverse repo

Course drinks

Day 2

Foreign exchange market products
A review of some forex mechanics

• How the market operates
• How spot rates are quoted
• How forward rates are quotes

Spot foreign exchange transactions

• Delivery and operations
• Assumption of risk and exposures

 Forward foreign exchange outrights
 

• Costs and gains from interest differentials
•  Forward options
•  Constructing the hedge
•  Evaluating its outcome

Foreign exchange swaps

• Uses in liquidity management
• Funding and investment swaps
• Time management and position moving

Day 3
 

Derivative market products
A checklist of derivative products
 

• What are derivative products?
•  Where do they come from?
•  What are the general risks in these products?
•  Gearing and leverage
•  Contracts for differences

Futures contracts
General overview of exchanges, terminology and principles

Currency futures

• Creating FX hedges and their evaluation

Time deposit futures

• Hedging money market borrowing and investment income

Bond futures

• As surrogate bonds
• General principles of trading and hedging

Swaps contracts
 Long-term currency and interest-rate swaps

•  General overview of the swaps market
•  Cross currency index swaps
•  Creating fixed to fixed swaps
•  Creating long-dated FX contracts
•  Long-term foreign currency funding
•  Improving market access
•  Hedging long-term cashflows
•  Interest rate (plain vanilla) coupon swaps
•  Index swaps
•  Amortising swaps
•  Forward start swaps
•  Hedging future long-term funding issues

 

Day 4

Using options
Currency and interest rate options
 

• Using options to manage currency risk
•  The decision taking process
•  Setting up strategies
•  Premium reduction strategies

 

Interest rate options
 

• The decision taking process
•  Setting up strategies
•  Premium reduction strategies

 

Caps and floors
 

• Using options in the medium term
•  Premium reduction devices

 

Course summary and close

• Peter Cartledge

  Peter Carledge started his career in international banking in settlement followed by terms in international trade finance and letters of credit. He traded spot and forward foreign exchange and money market products for several years before becoming involved in the training environment. After a period full time training in 1983, he returned to the markets in 1985 as derivative products started to develop in London and was closely involved in working with clients at Midland Montagu Investment Bank, (now HSBC) in strategic risk management, financial engineering and consultancy and new product development. Due to his extremely wide experience and detailed knowledge of global financial markets, as Senior Manager Treasury Skills Consultancy, Peter was responsible for advising and training corporate and bank staff, in all aspects of treasury and capital markets, fixed income, derivatives and risk management. 
  
  Peter has published the following: * Spot Currency Dealing, (Foreign Exchange Manual) Woodhead Faulkner 1991 * A Handbook of Financial Mathematics, Euromoney Books 1991 * Financial Arithmetic - A Practitioner's Guide, Euromoney Books 1993 * Market Calculations – Bond Markets, Financial Times - Pitman 1998 * Market Calculations – Interest Rates, Financial Times - Pitman 1998 * Money and Bond Calculations, Euromoney Books 2000 * Financial Derivatives Calculations, Euromoney Books 2001 Member of The Global Association of Risk Professionals (GARP) Member of The International Association of Financial Engineers (IAFE)

Treasury Products Workshop

Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.

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