Session 1: Introduction
Purpose of treasury management
The structure of treasury management
Roles of individuals in treasury management
Session 2: Interest Rates & The Term Structure of Interest Rates
Present value and future value of money market instruments
Simple interest rates and compound interest rates
Financial market infrastructure
Interpreting the yield curve
Treasury Training exercise: Identifying weaknesses in yield curve assumptions
Session 3: Asset & Liability Management
Definition of ALM – how banks make money
Capital adequacy – rules and implications
ALM organisation and infrastructure
Balance sheet management
Credit risk transfer instruments
Bank capital and liquidity
Session 4: Identifying, Measuring & Monitoring Risk
Defining risk
Types of risk:
Market Risk
Credit Risk
Liquidity Risk
Operational Risk
Risk measurement techniques fundamental to treasury training:
A introduction to Value-at-Risk (V-a-R)
Class exercise: Identifying risk in diverse scenarios
Session 1: Money Markets & Fixed Income
Functions of the money market and instruments
Features of domestic and euro markets
Conventions applicable to money market instruments
An introduction to bond pricing
Introduction to Repos
Session 2: Foreign Exchange
We begin session 2 of treasury management training with how the FX market works
Basic FX dealing and terminology
Quoting spot rates
Calculating cross rates
Introduction to the principles of market making
Class exercise: Examining factors that can affect exchange rates
Session 3: FX & Interest Rate Derivatives
Forward contracts
Calculation of forward FX rates
Premium, discount & par concept:
Understanding forward cross-rates
The basics of swap contracts
Session 4: Options
Understanding options
An introduction to pricing options
Option payoff profiles
Option strategies
Overview of FX options
Final Treasury Management Training Course exercise: Choosing a strategy
1309 G Street NW, Suite 900, Washington, DC 20005, USA
+1 919-503-4999
