OBJECTIVE

A strategic review of this area should consider the products and the risks involved in running a treasury business. Participants will also learn how cash and derivative products are priced, traded and used by practitioners, and how markets and credit limits are set to control these products compared to the internationally accepted customs and practice.

APPROACH

Risk management

• Overview risk management
• Defining different risks
• Measuring risks
• Controlling risk

Time value of money

• Review future and present value
• Review day count conventions and compounding

Cash money market instruments

• Define the different products in the markets
• Show applications of the main products

Foreign exchange

• Define spot and forward foreign exchange
• Analyze the pricing of forward FX
• A corporate viewpoint and a forward FX trader

Interest rate swaps

• Define an interest rate swap
• Characteristics and features of interest rate swaps
• Interest rate swap pricing

Managing and controlling risk

• The difference between asset and liability management and risk management
• Value at risk, stress testing and back testing
• What is the role of the Treasury manager

Futures and forwards

• What are the mechanics of futures including margins and settlement
• Examine the pricing of both contracts

Forward rate agreements

• Define a forward rate agreement
• How they are priced
• Applications of the forward rate agreement
• Review the beginnings of the forward curve