Introduction to Treasury


With treasury management becoming a key strategic function within an organisation following the financial crisis, this course provides a basic grounding in the concepts and products used in treasury management within banks, companies and financial institutions. Besides explaining market terminology and treasury jargon, the course explores the liquidity and risk characteristics of the different instruments involved in managing funding risk, interest rate risk and foreign exchange risk. It also provides insight into current market dynamics, the role of the market participants involved and the overall relationship to the economy and interest rates.

Learning outcomes:

On completion of this course, participants will have a greater understanding of:

  • The money market
    • Definitions of the money market and the role of participants
    • The inter-bank deposit market; domestic and offshore
    • Establishing the cost of liquidity - LIBOR
    • Money market instruments: Time deposits, Certificates of Deposit (CDs), Treasury Bills, Bills of Exchange, Commercial Paper (CP)
    • The Repo Market - different types and the motivations of the players
    • The role of the Central Bank and Bank of England open market operations
  • Spot and forward foreign exchange
    • An overview of the market and its uses
    • Quotation of spot and forward rates; key jargon explained
    • Calculating cross rates
  • Forward rates
    • Forward rates agreements (FRAs) defined
    • Uses in hedging
  • Financial futures
    • Key concepts
    • Centralised counterparties and margining
    • Currency futures
    • Short term interest rate futures (STIRs); compared to FRA’s
  • Interest rate swaps and options
    • Key concepts
    • Uses in managing risk

Authored by: Kavi Kumar MBA FCCA

CPD Points: 1

CPD Duration (hours): 1

Access: 12 months from purchase date

Price (excludes VAT): £35.00