The purpose of this seminar is to give you a highly practical guide to treasury products and their uses in the day-to-day financing and risk management operations of industrial corporations and financial institutions.
After a general introduction and overview, we present and explain the range of loan and credit facilities available for cash management and funding. These facilities include (interbank) borrowing and lending, syndicated loans, underwriting facilities and MTN-programs.
We then look at the market for negotiable money-market instruments, including commercial paper, certificates of deposits, and treasury bills. In each case, we explain how they are priced and traded. We also cover bonds, repos and reverses and their uses.
We then turn to the FX markets. We explain how these markets work and how FX products are used for financing, investment and risk management purposes. We explain different approaches to hedging, including cash-flow hedges, rolling hedges, cross hedges and proxy hedges using spot and forward FX contracts.
Furthermore, we give a thorough introduction to derivative products such as FRAs, swaps, overnight index swaps, interest rate and FX options, and explain how these products are used to hedge repricing risk, cash flow risk and fair value risk. We also look at how "structured products" can be used to obtain "yield enhancement", to reduce financing costs, or for the indirect hedging of financial and commodity risks.
We give an overview of different mechanisms and systems used for trading, clearing and settlement of transactions in treasury products. We also look at some of the accounting, documentation and regulatory issues involved in using treasury products, including the use of master agreements, and the clearing and reporting obligations under the new EU (EMIR) and US (Dodd-Frank) regulations.