The New York Global Treasury Management Academy

This 4 day interactive New York Global Treasury Management Academy is designed to provide Bank Treasury, Accounting and Finance professionals with current, practical knowledge of the essential elements of Treasury management in a best practices environment. They will learn practical ideas on how to transform their Treasury into a world class operation that operates with improved control and efficiency. Course objectives: Understand in depth how the financial system and its' products work Know which treasury strategies to implement to maximize trading returns while managing risk Understand complex derivative products and their implications for regulatory compliance Learn how to effectively measure and manage Treasury performance Gain an understanding of how your customers in multi-national corporate treasury departments manage liquidity and risk How to implement treasury tools and techniques that will increase shareholder value Using case study methodology, computer simulations and worked examples, the attendees will learn how to apply Best Practice tools and techniques in all areas of Treasury management in order to improve control, optimize asset utilization, reduce cost and better leverage staff . Who should attend? This course has been carefully designed to meet the needs of: Bank Treasury Managers Asset-Liability Managers Traders and Dealers Bank Operations Managers Bank Internal Auditors Finance Regulators Bank management responsible for Corporate Planning, Internal Control and Regulatory Compliance
Day 1 The Bank The business of wholesale banking -How the bank makes money -Time value of money -What lines of business are under pressure Change in the paradigm -How the financial meltdown of 2006-2009 changed treasury EURO meltdown -What is the increased risk The global regulatory environment -Current status: Basel III, Dodd-Frank, EMIR, SEC -Latest ratios and requirements -Why the face of banking will change forever -Call reports in review Interactive Exercise: Delegates will utilize a work paper approach to evaluate how their bank will change in this new environment. Treasury Treasury objectives -The key factors Bank treasury compared to corporate treasury Treasury organization structure and location -Centralization vs. decentralization Treasury Benchmarking and metrics -Shift from P&L to Value-Add metrics -How to integrate all elements for improved results -Worked examples The control environment The changing role of treasury in the new age Interactive Exercise: Delegates will utilize a computer simulation to develop a practical series of Treasury Benchmarks. Take away. Capital Structure Bank financial statements -What are they telling us -Key assets and liabilities -How banks' borrow -Strategic choices -Hybrid and structured products -Short-term alternatives How to manage a global capital structure -Asset/liability management -Funding and investment strategy -Effective tools and techniques Weighted average cost of capital (WACC) -Worked examples Optimal capital structure Long and short term debt and credit ratings -How to develop an effective strategy -Off-balance sheet alternatives Financial statement analysis -Worked examples Convergence of FAS and IFRS Interactive Exercise: Delegates will utilize a case study as the platform to discuss the capital structure at their bank. Interest Rates Benchmark rates -London interbank rate -Other rate benchmarks Interpreting yield curves -Forward pricing Pricing -Deposit interest Credit spreads and the pricing of debt -Worked examples Interactive Exercise: Delegates will utilize a white paper on the rate environment study as the platform to discuss the use of rate data by Treasury. Day 2 Corporate Treasury Corporate treasury's view -Critical differences Corporate treasury objectives -Key factors Corporate treasury organization & metrics -Global perspective -Roles and responsibilities -Value-add performance metrics -Worked examples Global Treasury Management Liquidity management structures and techniques -Physical concentration compared to notional pooling -Integration of working capital management with that of cash and cash forecasting -Worked examples Restricted cash countries -Cash optimization and control despite the barriers In-house bank -Organizational structure -Intercompany loan administration Multi-lateral netting -How to establish a program that reduces costs and improves efficiency -Leading, lagging and other means to optimize cash -Re-invoicing -Worked examples Financial risk management -Foreign exchange & interest rate hedging operations -Commodity hedging Best practices in MNC treasury -Reference chart Bank RFP's corporate treasury's view Interactive Exercise: Delegates will utilize a case study as a platform to discuss points of contact with the corporate customer and responses to RFP's. Asset, Liability Management Treasury's ALM objectives ALM perspectives -Regulatory, financial markets, operations Mapping of assets and liabilities to risk Forecasting cash flow and working capital -Worked examples ALM Operations -Organizational requirements -ALM framework for NII -Impact on liquidity and capital -Financing strategies -Stress testing -Worked examples Identifying rate sensitive pools -Gap analysis -Basis and yield curve twist risks -Static and sensitivity analysis -Worked examples Multi-currency ALM pools Transfer pricing -Single pool, multiple pools, matching -New regulatory initiatives -Operational controls ALM Risk Management Stress testing techniques Use of interest rate and foreign exchange derivatives to manage NII Hedging strategies and effectiveness Risk modeling -VaR -Monte Carlo -Portfolio mean -Duration, convexity -Worked examples Asset management -Linkage of PD, EAD and LGD to credit spreads -Default intensity and migration -Estimating default probabilities and recovery rates Off balance sheet risk and contingencies Forecasting deposit run-off -Worked examples Interactive Exercise: Delegates will utilize a case study as a platform to discuss ALM tools and techniques. Day 3 Investments Policy considerations -Tradeoffs: liquidity, capital return, yield -Stop limits -Controls Forecasting liquidity and probability layers of investable cash Money Market instruments -Commercial Paper -Asset backed commercial paper -Certificates of deposit, time deposits -Acceptances -REPO's -Capital guaranteed notes Investment management -Comparison of current alternatives -Investment policy -Macaulay and modified duration -Zero curves -Optionality -Worked examples Current issues and anticipated changes Bond Trading Operations -Risk control both credit risk and trading risk -Bond maturities and credits to trade -Testing of historical data to find optimal mix -Regulatory guidelines Controls -Stop limits Delegate Practical Exercise: Delegates will utilize a case study in a practical mapping of bond trading strategies. Practical Risk Management Accounting for Treasury products under accounting standards Understanding credit derivatives -CDS, TRS -Changes expected in the CDS market -Specific risk with credit derivatives Basic asset and liability management -Gap analysis -Currency exposure -Credit risk -Liquidity risk -Worked examples Dynamic risk management -Risk management and reduction Interest rate risk management -Duration, convexity -yield curve risk -Volatility risk VaR modeling -Modern concept -VaR and volatility -Worked examples -Confidence levels -Unwind period Forecasting cash flow and working capital -Worked examples Enterprise Risk Management Holistic view -Core risk -Non-core risk Treasury risks -Focal point Bank wide risks -VaR applied -Counterparty risks -Protecting assets against default Best practices in equity risk management Compliance risk in the real world Regulatory impact on risk management -EU Capital adequacy, Basel III and Dodd-Frank Delegate Practical Exercise: Delegates will utilize a case study as a platform to discuss bank risk management issues. Day 4 Foreign Exchange The risk and the market -Drivers of rates -Quotation of spot rates -Current regulatory impact Predicting price movement -Volatility -Continuous linked settlement Foreign exchange hedging operations -Cash flow hedges -Effectiveness testing -Fair value hedges A view on Mainland China -Quick march to convertibility -Impact on other currency pairs Foreign exchange products and techniques -Forwards -Structure and application -Pricing -Participating forwards -Futures -Structure and application -Pricing -Non-deliverable forwards -Off-shore market places -Foreign exchange SWAPS -Structure and application -Pricing -Foreign exchange options -Structure and application -Pricing -Counterparty risk -Option variants -Vanilla -Average rate -Knock out -Look back -Other products Worked examples -Counterparty credit risk of OTC options Foreign Exchange book trading -Forecasting rate movements Delegate Practical Exercise: Delegates will utilize a structured paper to discuss the role of various types and uses of currency management products. Interest Rate Products The risk and the market -Drivers of rates -Predicting price movement -Volatility -Changes expected in the CDS market -Cheapest to deliver structures -Current regulatory impact Interest rate products and techniques -Forwards -Structure and application -Pricing -Futures -Structure and application -Pricing -SWAPS -In trading and risk management -Structure and application -Pricing -Changes expected in the SWAP market -Interest rate options -Caps, floors, SWAP options -Structure and application -Pricing Worked examples Interest rate book trading Delegate Practical Exercise: Delegates will utilize a structured paper to discuss the role of various types and uses of interest rate management products. Commodities The risks and the markets -Regulatory changes Diversity of commodity markets -Indices -Trading on the various markets Commodity book trading Summary and conclusions