All about Treasury Management, (One Day)
Enquire or book this course
This Treasury Management course is for senior managers who would like to know more about Treasury. The main topics that will be covered are:
- How the Treasury facilitates core business
- The risks and how they can be measured and controlled
- Derivatives and how they are used
- The bond issuance process & all in costs
- How mortgage hedging works and some of the problems encountered
- How credit derivatives and collateralised debt obligations work & what they are used for
- Structured investment vehicles & asset backed commercial paper
- Current problems in the industry
Training will be in a workshop format. This will include a mixture of presentation and case study material. There will be time allocated for questions and answers.
Prior knowledge of Treasury is not required. Pre-course reading will be provided, it is anticipated this will take no longer than 1 hour. Course documentation will comprise the presentation.
Below is a summary of the Treasury Management course. The day has been placed in a logical sequence.
Morning
Inside the Treasury: Why banks and Societies have treasuries, how treasuries make money and add value to the core business.
- What a Treasury does
- Key terminology
- Main functions
Risks in Treasury including measurement and limits
- Interest rate risk
- Foreign exchange risk
- Liquidity risk
- Operational risk
Derivatives
- What they are
- Over-the counter markets and exchange traded products
- Restrictions placed on the Society
Interest rate swaps
- How they work
- A case study example of pricing
Bonds
- Fixed and floating rate instruments
- Why they are issued and purchased
- How the Society does a new issue including the swap hedging process
- A case study example of calculating issuance cost
Mortgage hedging
- How swaps are used
- Basis risk
Pipeline hedging
- What this risk is
- The problem with pricing it
- How you could manage this risk
Afternoon
Pre-payment risk
- What this risk is, (optionality)
- The problem with pricing it
- How you could manage this risk
Credit default swaps, (CDS)
- How a CDS trade works
- Default probability, recovery rates & credit spreads
Collateralised debt obligations
- How these transactions work including
- Collateral, ramping, issuing vehicle, (SPV), tranches, (senior, mezzanine, equity), ratings, attachment points and subordination, waterfalls, diversification, role of the manager and rating agency
Current concerns with structured products
- Complexity
- Rating agency assessment
- Liquidity
- Valuation
Covered bonds & securitisation
- What these products are
- How they work
- Why they have been used by financial institutions to secure funding
Structured investment vehicles & Asset backed commercial paper programmes
- How the structure works
- The assets and liabilities
- Objectives of originator
- Main risks for the investor & originator
- Current problems
End of workshop & review
Related Documents
26th February 2011
9th January 2011
Getting a fresh look at your treasury can give you a new perspective on the risks you are running and the things that you need to tighten up on. Why wait for the regulator? Here's one client's experience.