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Training Courses > Financial Products, Markets & Risk

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Financial Products, Markets & Risk Workshop, (Three Days)

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This workshop will cover the purpose and function of a bank treasury, the mechanics of money market, fixed income & derivative products, how financial markets are closely linked together and the key factors that influence the behaviour of market participants. The workshop will include:

  1. The role of the Treasury
  2. The generic products available in the market
  3. The cash flow structure and appropriate use of these products
  4. The risks associated with the products
  5. The objectives of customers using these instruments

The course will be presented in a workshop format. This will include a mixture of presentation and case study material. At the end of the workshop participants should have a clear understanding of the treasury function, the financial products used, and the risks related to those products. The workshop is designed for up to ten staff who are new or have limited exposure to financial markets and wish to build a framework of understanding relating to the Treasury and financial instruments,

Below is a summary of the workshop content. The content of each day has been placed in a logical sequence and addresses the main products, pricing, and application.

Day One

Inside the Treasury

The Role of the Treasury

  • The current competitive environment: why it is getting harder to cover costs
  • Key jobs & functions

An introduction to terminology

  • Yield curves
  • Capital markets / money markets
  • Libid / Libor
  • Present value
  • Long / short
  • Accrual
  • Mark-to-market
  • Trading book / banking book
  • Duration / basis point value
  • Arbitrage
  • Risk arbitrage
  • Primary / secondary market
  • Over -the-counter
  • Exchange traded
  • Hedging
  • Spread differentials

Money Markets & Foreign Exchange

Financial mathematics & products

  • Discount factors, present / future value
  • Construction of the zero coupon model
  • Yield curves and market conventions
  • Swap spreads / government debt markets

Term structure of interest rates

  • Credit differentials
  • Government debt
  • Corporate debt

Money markets

  • Loans and deposits
  • Certificates of deposit
  • Commercial paper

Foreign exchange

  • Spot exchange rates
  • Interest rate differentials
  • Outright forwards
  • Forward points
  • FX Swaps

Day Two


Floating rate notes

  • Pricing
  • Issuance by financial institutions
  • Perpetuals
  • Embedded options

Fixed income securities

  • Cash flow structure
  • Interest conventions
  • Price behaviour
  • Interest rate risk
  • Credit spreads
  • New issues & pricing

Zero coupons

  • Cash flow structure
  • Risk characteristics


  • Classic repo
  • Repo rate
  • GC & special
  • Haircuts
  • Use by traders & investors



  • Product mechanics
  • Settlement
  • Use in hedging / trading

Interest rate swaps

  • Structure
  • Pricing screens

Generic interest rate swaps

  • Who uses interest rate swaps
  • Comparison with other instruments
  • Spot starts
  • Forward starts
  • Amortising structures
  • Rollercoaster structures

Liability swaps

  • New issues
  • Hedging debt

Day Three

Swap valuation

  • Mark-to-market
  • Basis point value

Currency swap structures

  • Fixed / fixed
  • Fixed / floating
  • FX swaps
  • Basis swaps

Using currency swaps

  • With new issues
  • With assets

Interest rate futures

  • Contracts
  • Pricing
  • Product mechanics & use

OTC Interest rate options

  • Caps/floors
  • Swaptions
  • Product mechanics & use


  • What are their motivations?
  • Importance of customer franchise to the bank

What influences investor behaviour & what do they focus on?

Collateral & Credit Support

  • The purpose of collateral & credit support
  • Typical trades covered
  • Mechanics
  • Documentation
  • Alternatives: break clauses, mark-to-market add-ons, third party guarantees

Capital/Measuring capital

  • Purpose of capital
  • Regulatory capital
  • Influence on markets

End of workshop & review