Treasury Management Academy

This intensive Euromoney Training course will provide you with the key tools to employ the right finance product to fit your treasury requirements. You will learn how to implement best-practice treasury strategies to minimise your risk exposure and drive strong returns to your bottom line. By attending this specialised course you will strengthen your treasury function, as well as acquire the skills and knowledge to capitalise on the opportunities available in the global financial markets. How will this course assist you? By attending this intensive 10-day course you will strengthen your treasury function, and you will Understand in depth how the financial system and its products work Know which treasury strategies to implement Gain a concise understanding of the timeframe to maximise returns Understand the most complex structured derivative products and how and when to use them Acquire a thorough understanding of how the financial system and individual products work Understand the rationale and treasury management strategies that financial players employ Analyse the products and strategies used to manage risk Gain a practical understanding of how derivatives work and their implications for balance sheets and regulatory adherence Who should attend? Designed for individuals that wish to make a real impact on their treasury function. We suggest the following treasury professionals attend: Treasury Managers Asset-Liability Managers Traders and Dealers Operations Managers Internal Auditors Finance Regulators Back Office Managers
Day 1 The banking background and the fundamentals of money markets - Course Chairman: Daniel Moylan The business of wholesale banking The role of a bank’s treasury in managing the bank’s exposures Economic and business cycles The basics of bank balance sheets Quotation of interest rates Interbank and over-the-counter markets Benchmark interest rates: the london interbank offered rate (libor);other similar benchmarks; use in pricing Matching and mismatching flows: gap analysis Use of financial calculator Calculation of deposit interest: u.s. And international conventions; alternative methods Time value of money Forward pricing Evening Networking Event: Drinks reception Day 2 Analysing Money Markets Market risk and the role of central banks: - Inflation expectations - Benchmarking Credit spread and the pricing of debt Liquidity issues Interpreting yield curves Short term traded paper, repo and forwards U.S. Commercial paper: history and development; nature of the product; issuance mechanisms; ratings; investor bases; scale and uses of market; role in treasury function Commercial paper outside the u.s.a: eurodollar commercial paper; sterling commercial paper; commercial paper in other markets Certificates of deposit: issuance by banks; nature of the product; investor bases; role in treasury function Commercial bills: nature of the product; acceptances and guarantees; investor bases; role in treasury function Repurchase agreements: repo as a means of borrowing money; repo as a means of funding short bond positions; repo risk Day 3 Forward rate agreements (fras) - Product structure - Pricing - Settlement calculations - Applications Introduction to exchange-based markets The nature and structure of futures markets Short term Interest rate futures - Nature of product - Pricing - Margining - Settlement - Example: three-month interest rate future on chicago mercantile exchange - Applications - Comparison with FRAs Bond Futures - Atructure, including Cheapest to Deliver (CTD) - Uses Futures markets video Day 4 Foreign Exchange Background to, and functioning of, the market Economic drivers of foreign exchange markets Quotation of spot rates Calculation and quotation of forward rates Market players Applications of spot and forward products “Predicting” price movement: economic and technically-based theories Risks and the role of Continuous Linked Settlement (CLS) The role of brokers Foreign exchange swaps - Product structure - Applications Non-deliverable forwards Foreign exchange options - Structure - Applications - The pre-eminent importance of volatility Application of option risk measurement factors - General - Simple option pricing - Delta - Gamma - Theta - Vega - Rho Path dependent pricing and Monte Carlo simulation Risk/reward analysis of options strategies Peculiar risks of options Construction of options hedges -Techniques - Limitations Counterparty credit risk of OTC options Options variants - Principles of options variants - Average rate options - Knock out options - Lookback options - Participating forward contracts Day 5 Islamic Finance - Course Co-presenter: Waseem Khan Conceptual issues Background Shari’ah Law and Riba Islamic Economic system Islamic Financial system Case study: comparison with conventional systems Financial Institutions Product Structure Applications Non-deliverable forwards Foreign Exchange Options Comercial banking Types of accounts Concept of Amanah Demnad for credit accounts (current account/savings) Time credit accounts (time deposits/ social benefits) Personal accounts (individual/joint) Business accounts (sole proprietorship, partnership, LLC) Credit/debit cards Financial instruments & contracts Transactional contracts Salam & Istinsna's (forward sales) Fiduciary sales - Examples Serf Ijarah Financing contracts Murabaha (mua’jjal, commodity, shares) - Examples Khiyar - Examples Tawarruq - Examples Ijarah (asset backed financing) - Examples Musharakah (P & L sharing) - Examples Diminishing musharakah (fixed asset and trade financing) - Examples Intermediation contracts P & L sharing Fee-based services - Examples Islamic capital markets Equity mutual funds Sukuks Tradable and non-tradable assets Global Financial Economy - Course Co-presenter: Warwick Lightfoot Role of central banks Monetary policy Liquidity management Banking supervision Systemic risk Lender of last resort Monetary policy Monetary targets Foreign exchange targets Inflation targets Federal reserve, European Central Bank, Bank of England Policy frameworks Open market operations Repurchase agreements (“repo”) Regulatory arbitrage, corporate governance and securitisation Disintermediation Mark to market valuation Fair value accounting Credit rating agencies (and utilities with casinos attached) The crises of 2007/8 The liquidity crisis: where had the credit risk gone? The credit crunch a nation of homeowners no more The banking crisis: the loss of banking capital Market and consumer panic: a flight to safety in a world where nowhere seems safe The men with a plan: government efforts to address the crises Update on recent events. Day 6 Commodities, Interest Rate Derivatives, Risk Identification Commodities markets - Diversity of commodities traded - Commodity indices and derivatives contracts - Energy, weather and other markets Interest rate and cross-currency swaps - Pricing - Valuation Applications of swaps in trading and risk management Marking to market and unwinding swaps Asset swaps Forward start swaps Risk in swaps Interest rate options - Interest rate guarantees - Caps - Floors - Swap options Risk Identification and Control What are the risks within Treasury? Deconstructing risk into its components Risk prioritisation and ownership The risk management process The organisation of risk management Risk controls and risk treatment Risk reduction strategies Day 7 Capital Requirement, Operational Risk and Risk Modelling The EU Capital Adequacy Directive and the current Basel Accord Some consequences of the second and third Basel Accord on - Market risk - Operational risk - Credit risk - Trading book issues How to assess risks Risk modelling Identifying operational risk Scenario modelling Sensitivity analysis Model risk Looking forward: what we might expect from the regulators? Managing credit risk Modelling credit risk from first principles Default and downgrading risk Day 8 Practical Risk Management Accounting for treasury products under international accounting standards Understanding credit derivatives Credit derivatives: the role of the protection buyer and the protection seller The basic instruments and their uses - Credit default swaps - Total return swaps - Other variants Specific risks of credit derivatives Principles of asset and liability management Gap analysis Currency exposure Credit risk Liquidity risk Dynamic management of derivatives portfolios Risk management and reduction Futures Options Multi product portfolios Interest rate risk measures and evaluation General principles Duration Convexity Discounted value of a basis point Interest rate driven risks Yield curve risk Volatility risk Value-at-Risk (VaR) modelling The modern concept of VaRcalculating VaR The role of volatility in VaR Confidence levels and VaR Choosing the unwind period Simple examples of VaR calculations Using VaR measures for risk management and control Day 9 Trading Simulation - Course Co-presenter: David Hayes This day is devoted to a series of increasingly complex trading sessions using Chisholm Roth’s RiskManager Trading Simulation TM. Most of the day will be spent working in small groups as market makers in an active and stimulating trading environment. Delegates will be rotated through a series of specialist trading desks in the major product areas covered by the first six days of the programme. We will build on the technical knowledge gained whilst also allowing for the development of new skills and trading strategies. The sessions are designed to highlight market making and position management capabilities that reinforce the learning in both a practical and competitive environment. Participant’s knowledge and experience will be enhanced improving both confidence and competence. By the end of this session the participants will be able to: Interpret price quotations on money market and foreign exchange instruments Manage the risks in trading forward FX and capitalise on arbitrage opportunities by using spot FX and the underlying money market instruments Identify the main risks associated with trading option positions and manage those risks effectively in a dynamic market Day 10 Corporate Treasury in Practice - Course Co-presenter: Morris Grossfield Case Study on Corporate Borrowing: Delegates work in teams to construct a corporate borrowing plan, choosing among possibilities in the capital, bank, and private placement markets. They will thoroughly examine conflicts between cost and security of borrowings, as well as consider balance sheet management and foreign exchange exposure. Delegates will get an intensive insight into the choices and the dilemmas facing corporate treasurers as they balance up the pro's and con's of different strategies available to corporate borrowers in formulating optimum borrowing strategies Case Study on the Use of Derivatives: Delegates work in teams to recommend a corporate strategy for managing a company's interest rate and foreign exchange exposures. Delegates will need to consider a myriad of hedging possibilities and conflicting priorities in order to test and develop their own understanding of the differences between speculation and hedging for a typical corporation, and the challenges of agreeing an optimal hedging strategy Self Testing and Putting into Practice Review of seminar and reinforcement of chief learning points Seminar test: an opportunity for participants to test the knowledge and skills they have acquired during the course Putting it into practice: a series of brief workshops with the trainers using examples provided by delegates drawn from their real life experience: a chance to get some pointers and advice Seminar evaluation Course summary and close