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Money Markets Liquidity & Bonds

Since the crisis has occurred the suspension of “normal” market conditions has completely altered assumptions about money markets, liquidity and debt issuance. Banks are now responding by making significant changes to their business. This course covers those changes and how they affect your Treasury. The key topics are:

Adapting to change
What is liquid and what’s not. Who do you deal with?
Measuring and reporting liquidity
Interest rate exposure (don’t forget it)
Sources of medium term liquidity
Dealing with investors-what they need
New issues, how they work and your cost of funds

There will be a mixture of presentation and case study material. Below is a summary of the workshop:

Morning

How the role of Treasury is changing

The “big issues”
Changing business models
The regulatory effect
The role of the dealer
The outlook

The money market desk

The key objectives for your firm

What’s liquid and what isn’t?

Loans and deposits
Certificates of deposit
Treasury bills
Futures & FRAs
Repo
What this means for your business

Managing liquidity

The purpose of liquidity
Liquidity gaps & reporting, what they tell you
How do you measure liquidity requirements?
What is a liquidity buffer or stock?
How do wholesale and retail businesses affect us?
What is “stress testing” and “reverse stress testing”?
Do you know your contingency funding plan?

Credit exposures

Who do you deal with?
Key indicators for stress
Basis risk, do you gain?

Interest rate exposure

What is your limit?
How you position and hedge
Gap reporting, basis point value; dealer’s tools
Interest rate outlook

Afternoon

Bond markets

The effect of the crisis
Cost and liquidity
Diversification of sources
Regulatory pressure
Access to Central Bank funding

What we can issue

Fixed coupon securities
Floating rate notes
Covered bonds
Securitised issues
Flexibility of medium term notes

The criteria investors use

Credit risk
Liquidity
Return
How investors identify value
The importance of ratings

The issuance process

Role of the manager
Using swaps
The all in cost of funds

End of workshop & review

Related Documents

Short courses>Money market products

elearning > Money markets

Learn about the following: Why managing liquidity is important. The products used. Loans and deposits. Libor and Euribor. Simple interest calculations. Certificates of deposit. Discounting. Commercial paper. Credit and interest rate risk.

Money Markets & Foreign Exchange

Training Courses > Financial Products, Markets & Risk

Market Guides > Wholesale loans & deposits

13th September 2009

If you borrow or save money at your local bank I expect the sums involved are normally small but when banks deal with each other the amounts are much larger. This market between banks for borrowing and lending cash is known as the interbank or money market. It allows banks with shortfalls to borrow and those with surpluses to lend. Imbalances like this occur everyday and every major currency has its own interbank market. It's at the core of the world's financial system and any disruption to it is potentially disastrous. Let's find out a little more.