Treasury Products - Practical Guide

Day One

10.00 - 10.15 Welcome and Introduction

10.15 - 12.30 Introduction to Treasury Products

• The Role of the Treasury Function
• Overview of Treasury Products and their Uses

Loans, Credit Facilities and Money Market Instruments

• How the Money Markets Work
  • Market participants, terminology, price dissemination, trading systems, …
• Traditional Bank Loans, Credit Facilities and Syndicated Loans
• Negotiable Money Market Instruments
  • Commercial Paper, Certificate of Deposits, Treasury Bills
• Repos and Reverses

12.30 - 13.30 Lunch

13.30 - 17.00 Capital Markets

• Introduction to Bonds and Bond Markets
  • Bonds and their Characteristics
  • World Bond Markets
  • Types of Bond Structures
• Using Bonds for Corporate Financing
  • How the corporate bond market works
  • Issuing corporate bonds
  • Rating and the rating process
  • Bond pricing in the primary and secondary markets
• Investing in Bonds
  • Treasury objectives of investing in bonds
  • Bond trading and settlement systems
  • Yield, duration and other analytics
  • Bond portfolio management
• Exercises

Day Two

09.00 - 09.15 Recap

09.15 - 12.00 Foreign Exchange Products

• How the FX markets work
  • Market participants, terminology, price dissemination, trading systems, clearing and settlement
• The Spot FX Market
  • Quoting conventions
• Forward FX Transactions
  • Outright forwards, spot/forward and forward/forward transactions
• Cases:
  • Hedging FX Exposures with FX Forwards
  • Hedging Economic FX Exposure
  • Hedging Commercial Cash Flows

12.00 - 13.00 Lunch

13.00 - 16.30 Derivate Treasury Products

• Forward Rate Agreements and Forward Spread Agreements
  • Mechanics, pricing, uses in Treasury
  • Creating synthetic FRAs via the FX market
• Case Study: Locking in Funding Costs with FRAs and FSAs
• Swaps
  • Interest rate swaps and their mechanics
  • Cross-currency swaps and their mechanics
  • Asset swaps and liability swaps
  • Case study: Issuing synthetic bond and calculating the all-in costs
• Exercises

Day Three

09.00 - 09.15 Recap

09.15 - 12.00 Derivate Treasury Products (Cont’d)

• Interest Rate Options
  • Caps, floors, swaptions and their mechanics
  • Case: Managing interest rate risk on variable rate debt using swaps, caps or collars
• Other Derivate Treasury Products (Futures, Currency Options,..)
• Documentation, Regulatory and Accounting Issues in using Derivates
  • Using master agreements
  • Accounting treatment: FAS 133 & IAS 39
• Exercises

12.00 - 13.00 Lunch

13.00 - 16.30 Structured Treasury Products

• Motives. Advantages and Disadvantages of Using Structured Financing Products
• Building Blocks of Financial Engineering
• Issuing Structured Bonds and Notes
• Examples of Structured Notes and Bonds
  • Reducing financing costs by issuing inverse floaters, bear notes etc.
  • Managing interest rate risk by issuing capped floaters etc.
  • Managing commodity and currency risk by issuing commodity-linked notes
  • Managing credit risk by issuing credit-linked notes
• Asset-Backed Financing
  • Securitizing receivables
  • Asset-backed commercial paper programs
• Exercises

Evaluation and Termination of the Seminar