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Training Courses > An Introduction to Treasury - Virtual course

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An Introduction to Treasury – The virtual course

Covid-19 has meant that we are much less likely to go to the office on a regular basis. This change may be temporary or lead the way towards a more flexible way of working. Who knows? Despite the situation we find ourselves in it should not stop us learning and with this in mind I have taken the well-known and highly rated two-day treasury workshop and developed it so it is now available as a virtual course. 

If you think two days is a bit much, don’t worry I’ve adjusted things. It covers all the main topics (and some new ones) and now comprises of ten one-hour sessions run over five days. It’s designed for banks and building societies and caters for a small group of between five and ten people. I like to think of it as a tutorial rather than a lecture and for that reason you get the full opportunity to discuss all the topics and learn about the issues involved.

My test of the usefulness is whether you can go back and apply the things we have been looking at to your daily work. I believe you will, and that’s because we look at things from a practical standpoint. We address what the all the jargon really means, how things work and the risks involved and importantly how we can manage those risks.

The explanations are straight forward; you do not need prior knowledge only a desire to want to know more. Whether you work in the front office, operations, risk, audit or finance this course will make learning a lot easier and quicker.

In a nutshell:

Who is it for?

This course is for anyone who works in and around treasury (audit, compliance, legal, IT, risk, operations) and wants to find out what goes on.

What will you gain?

  • You will find out how things have changed and how this has influenced treasury;
  • Understand how the main products work (money markets, bond markets, foreign exchange and derivatives) and how they are used;
  • Learn why we have a treasury and how effective control is best undertaken by a structured approach to risk and governance;
  • See how large sums have been lost and learn why regulation and compliance have become overarching;
  • Appraise some of the key risk measures and tools and learn why a comprehensive approach to risk management normally uses several such methods;
  • An insight into some of the detail (for example why risk measures are flawed) and some of the big picture things too (should treasury make money? What determine risk limits?);
  • It’s all documented and you will get a full copy of the course material used.

How do you book it?

  • By mutual agreement – contact us directly.

Let’s see what’s in each session:

Session 1

Key issues in financial markets today 

  • The financial crisis
  • Challenging markets
  • The regulatory response
  • Fines
  • Bank capital & profitability

What the Treasury does

  • Trading & hedging
  • Dealing with clients 
  • Key types of transaction
  • The centralisation of risk
  • Profitability versus service 

Key terms that are used within treasury: An explanation of some of the essential terminology and definitions.

Session 2

Money market products: What the yield curve tells us, the main products, their risks and how these markets have changed.

  • The yield curve
  • Certificates of deposit
  • Commercial paper
  • Central bank deposits
  • Treasury bills 

Repurchase agreements: How repo transactions work and the risks they incur.

  • Classic repo
  • Repo for funding
  • Risks associated with repo

Session 3

Liquidity risk: Extensive regulation has completely altered the way this risk is managed.

  • Maturity transformation & defining liquidity risk
  • Liquidity gap reporting
  • The regulatory regime, risk appetite and measures
  • High quality liquid assets and survival days
  • The liquidity coverage ratio
  • The main "drivers" of liquidity risk
  • Wholesale and retail funding
  • The impact of stresses
  • Early warning indicators
  • The net stable funding ratio

Session 4

Transfer pricing: The cost of funding and pricing risk into transactions

Foreign exchange: How foreign exchange markets work and how firms use foreign exchange

  • The nature of foreign exchange risk
  • Spot, forward and foreign exchange swap transactions
  • Currency swaps

Session 5

Derivative products: What they are, what leverage is, why the derivative market has grown. The risks derivatives have.

  • Interest rate swaps, cash flows, use for hedging, valuation, basis point value
  • Forward interest rates, an introduction
  • Interest rate options: A brief explanation of caps, floors and swaptions
  • Option like risks in bank balance sheets 

Session 6

Bonds: Investors and issuers – how they use these markets

  • Fixed rate bonds: What they are, evaluation – yield
  • Floating rate notes: What they are, evaluation – discount margin
  • Zero coupon bonds: What they are
  • Bond issuance, what happens, the cost of money and investment returns
  • Quantitative Easing, buying bonds - a tool of monetary policy

Session 7

Market risk: An introduction to this topic that assesses the strengths and weaknesses of the following:

  • Gap reports, what they show and how they are used
  • Basis point value, a simple alternative measure
  • Duration, examples and use
  • Value at risk, what it tells us, the “fat-tail” problem
  • Earnings at risk

Session 8

Credit risk: A low probability, high cost event

  • What it is, how it is incurred and how it is measured
  • Counterparty credit risk, default probability, loss given default
  • The importance of ratings

Structured products: A brief explanation of collateralised securities, how they work and the risks involved

  • Collateralised debt obligations
  • Mortgage backed securities
  • Covered bonds

Session 9

Credit spreads

  • Assessing credit spreads, relative value, asset swaps and credit default swaps, the relationship between credit spreads, the probability of default and recovery rates.

Collateral & clearing

  • How derivatives create credit risk, mitigating this risk with collateral, independent amounts, thresholds and valuation percentages. Bilateral trades versus clearing. 

Libor transition

  • How and why Libor is changing to risk free rates and the implications.

Basis risk

  • Interest mismatches in the balance sheet, the importance of flexibility to margin adjustment.

Session 10


  • How and why we value trades, the different approaches that we can use

Operational risk in Treasury

  • People, processes and systems, examples of how things can go wrong
  • Fraud-case study

Governance & risk limits

  • How and why the board is involved in setting the risk parameters
  • How this translates into risk limits
  • Reporting structures 
  • The three lines of defence

End of workshop and review