A sound knowledge of treasury products, both on the asset and liability side of the balance sheet, and the regulatory framework in which they exist, is a pre-requisite to understanding the risks that face depository institutions in the current trading and regulatory environment.
This 4-day programme examines in detail the instruments used to fund the balance sheet and what instruments the funds are invested in. At each stage, the rationale for funding choices and the investments made are given and explained in the context of the current regulatory framework, with a view to maximising risk-adjusted returns. The foreign exchange market is crucial in enabling banks to diversify exposure by undertaking international activities. Day Three introduces delegates to spot and forward FX transactions, outlining how these instruments are quoted, what drives their prices, and how they used by banks (and corporates) to manage exposures.
Risk mitigation is an important activity of the treasury function. Day Four introduces the common derivative instruments used to manage treasury risks, in particular, money market forward rate derivatives and swaps.
Attend this practical course and learn:
- Repo transactions explained
- Trading strategies to enhance return
Long-term debt instruments
- Government bonds
- Bond characteristics
- New regulatory compliant financial instruments for funding the bank
- Contingent convertible bonds
Foreign exchange transactions
- The spot FX market
- Quoting forward rates
- Managing currency and interest rate exposures using FX swaps
- Marking-to-market forward FX transactions
- FRA’s and swaps explained
- Using currency options