Who is this course for?

This course is relevant to people working in finance, risk, audit, operations, treasury, compliance, legal, IT and accounting. Particularly those who are new or have recently altered their job. If you work in treasury or in a role that supports treasury and you want to find out more about what is happening and why you do it this course will explain all.

What is the level?

The course is at a foundation level and no prior knowledge is assumed. There will be a mixture of presentation material, case studies, questions and answers.

This is what you will learn:

• How markets have changed and what it means for treasury;
• What goes on in the treasury;
• How a treasury is structured;
• The role of treasury;
• The terminology used;
• The important money market products;
• What liquidity risk really is;
• How fixed income products work and what they are used for;
• All about foreign exchange markets and risk;
• How interest rate options work;
• How key derivative products work and how they are used;
• Market risk and its measurement;
• Valuations and limit structures;
• Operational risks.
• There is a mixture of presentation material, case studies, questions and answers. The explanation is straight forward; Practical case studies show you what happens.

Day One
The New World: The crisis has substantially altered the way markets work and how we manage risk.

• You will find out how these changes have affected both banking and the treasury business.

Inside the Treasury: Find out why banks and societies have treasuries, how treasuries make and lose money and what people do.

• What a Treasury does
• The main risks
• Main job functions , responsibilities & governance
• The affect on the whole institution

Key Terms: Learn about key terms you need to know including:

• Long / short
• Spot / forward
• Cash / derivative
• Libid/Libor
• Yield curves
• Present value
• Over-the-counter
• Exchange traded
• Market risk
• Hedging

Liquidity: You will see how the main products work and how they are used to manage short term liquidity within the new regulatory framework.

• Loans and deposits
• Certificates of deposit
• Commercial paper
• Treasury bills, reserve accounts
• The role of the central bank and emergency facilities
• How liquidity is managed and measured
• Buffers, stress testing and contingency funding plans
• Funds transfer pricing, what it is and why it's important
  

Repurchase agreements: Repo is used for funding and to borrow collateral. You will find out about how repo works and the risks involved:

• What happens
• Why repo is used & the risks
• Haircuts and margins

Foreign exchange: FX markets are used for trading, hedging and arbitrage. You will see how banks and customers do this and will learn about the following:

• How FX risk occurs
• Spot exchange rates
• Forward rates & forward points
• FX Swaps

Bonds: These are used for the management of long term assets and liabilities. You will learn about:

• Issuers & investors
• Fixed income securities
• Floating rate notes
• Market conventions
• How bonds are evaluated
• Collateralised and unsecured debt
• How a new issue is done
  

Day Two
Interest rate swaps: Interest rate swaps are used to hedge and trade interest rate risk. You will cover:

• How they are priced
• Spot, forward and amortising structures
• How they are valued
• How they are used to hedge assets and liabilities
• Risks swaps don’t hedge
  

Interest rate risk: Interest rate risk is measured using different techniques. You will find out how they work and the advantages & disadvantages of each including:

• Gap reports
• Duration
• Basis Point Value
• Value at risk
  

Currency swaps:

• Learn how currency swaps are used to convert assets and liabilities from one currency to another
• Find out how basis swaps influence the cost of currencies

Interest rate options: You will learn about caps, floors and swaptions.

• What they are, how the prices work, what makes their prices change and how dealers use these instruments in structuring trades.

Valuation methodologies & limit structures: Find out how different trades are valued and the importance of having appropriate limits in place.

• How we value transactions
• Mark-to-market and mark-to-model
• The importance of independent valuation
• The purpose of limits
• Risk appetite, quantitative and qualitative measures
• How limits are designed
• Working with limits
  

Operational risks: Operational risk is not new. It has existed since banks started trading. Ignoring operational risks can lead to serious problems.

• You will find out how and why banks have experienced major losses through operational risk and the lessons that can be learnt from these mistakes.

End of workshop and review