Treasury - Introduction

Overview

This two-day course provides a solid grounding in the concepts and products used in treasury management within banks, companies and financial institutions, as well as explaining relevant terminology and jargon. The practical content of this course uses case studies to examine the liquidity and risk characteristics of the different instruments as well as providing delegates with an insight into current market dynamics and the role of the market participants involved. It also demonstrates how instruments are inter-related and the opportunities this presents for arbitrage.

Who is this for?

This course will be of benefit to those who are new to traded markets and treasury products and looking to gain a clear introduction to them. It is suitable for new dealers, operations staff, audit staff and systems people.

What will you learn?

• Introduction
  • Basic financial maths
  • Day count conventions
  • The time value of money
• The Money Market
  • Definitions of the money market and the role of participants
  • The inter-bank deposit market; domestic and offshore
  • Establishing the cost of liquidity - LIBOR
  • Money market instruments: Time deposits, Certificates of Deposit (CDs), Treasury Bills, Bills of Exchange, Commercial Paper (CP)
  • The Repo Market - different types and the motivations of the players
  • The role of the Central Bank and Bank of England open market operations
• Spot Foreign Exchange
  • An overview of the market and its uses
  • Quotation of spot rates; key jargon explained
  • Calculating cross rates
• Forward Foreign Exchange
  • Forward foreign exchange defined
  • Calculating forward foreign exchange rates
  • Derivation of forward points
  • Covered interest arbitrage
• Forward rates
  • Forward rates agreements (FRAs) defined
  • Calculating forward rates
  • Settlement
  • Uses in hedging
• Financial Futures
  • Futures defined
  • How do they work
  • Centralised counterparties and margining
  • Currency futures
  • Short term interest rate futures (STIRs); compared to FRA’s
• Interest Rate Swaps
  • Swaps defined
  • Uses
  • Pricing
  • Their variations including SONIAs

• Currency and interest rate options
• Uses in managing risk and basic strategies

Other related courses

Bond Markets - Introduction