Treasury Products Workshop

Sound treasury management utilises the right financial products to manage risk, capitalise cashflow and minimise debt financing. This 4-day programme will therefore provide attendees with a comprehensive understanding of the products used by banks and corporate treasuries in today's successful treasury management. In addition, the course will give an insight into the best borrowing sources and investments, and when and how to use them, together with the essential processes for smooth day-to-day running of your institution’s finances. Finally, the course will provide an overview of the structure and key functions of the treasury and how to implement robust risk management strategy to weather today's tough market conditions. 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 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 can really understand key concepts Comprehensive product notes are provided for future reference
Registration commences at 8:30 Programme runs from 9:00 - 5:00 daily Day 1 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