Treasury - an introduction

An overview of the main areas of treasury management

All those who are new to traded markets and treasury products and looking to gain a clear introduction to them. It is also suitable for new dealers, operations staff, audit staff and systems people.

• A solid grounding in the concepts and products used in treasury management within banks, companies and financial institutions.
• An explanation of the relevant terminology and jargon.
• An examination of the liquidity and risk characteristics of the different instruments.
• An insight into current market dynamics and the role of the market participants involved.
• An understanding of how instruments are inter-related and the opportunities this presents for arbitrage.

The speaker will be drawn from a pool of qualified professionals who specialise in this subject. Having worked for leading organisations they will relate the course content to real life case studies.

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 FRAs

Interest rate swaps

• swaps defined
• uses
• pricing
• their variations,including SONIAs

Options

• currency and interest rate options
•  uses in managing risk and basic strategies.

12 CPD hours (where applicable)

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