Treasury Products

In addition to your class tuition and study materials, you will receive the following:


Complimentary e-learning module
Case Study

• Interest rates and spot rates are taken from the market and delegates are asked to verify the forward foreign exchange rate and account for any differences between the calculated rate and the quoted rate.

Exercises

• Calculations to consolidate the material covered on discounting, interest rates and day count conventions
• Determining the profit or loss on the holding period of a market instrument
• Establishing a cross rate from two component rates

Other Extras

• Certificate of attendance

Level: Introductory


Synopsis:
Would you know what is meant by a sixes nines Fra? Or what a two hundred pip discount would do to the cable rate? Or even why we would want to apply a two hundred pip discount to the cable rate for that matter? This course is an introductory tour of the major instruments and calculations facing banking and corporate treasury departments.


At the end of the course participants will be able to: Know the fundamental structures of FX and money market derivatives . Understand how forward FX rates are derived . Understand how a spot FX rate is quoted . Calculate cross FX rates . Know the terminology and conventions in the FX markets . Understand what a repo is and know its applications . Know the workings and applications of money market instruments . Know the characteristics of the inter-bank markets and the significance of benchmark rates such as EURIBOR and LIBOR . Know the different day-count conventions used in the FX and money markets . Calculate interest amounts using money market conventions .


Prerequisites:
None


Suitable For:
Individuals who need to know how the money markets and foreign exchange markets work. It is particularly useful for new entrants to the dealing room or corporate treasury.


Interest rates and basic calculations

• Compounding and discounting using annualised rates
• Day count conventions for money market instruments
• Nominal versus effective interest rates
• Calculating forward-forward rates
• Drawing a yield curve using money market rates

Money markets

• The inter-bank deposit market: Benchmark rates including LIBOR, EURIBOR, EONIA and SONIA; The off-shore, Eurocurrency markets
• Money Market instruments: Treasury Bills; Bank bills (bills of exchange); Commercial Paper (CP) and commercial paper ratings; Certificates of deposits
• Repurchase agreements (Repos): GC Repos; Specials
• The role of the central bank in money markets

Foreign exchange

• An overview of the wholesale foreign exchange markets: Standard exchange rate notation; Big figures and pips/points; Base currency and variable currency
• The spot foreign exchange market
• Cross rates and their calculation
• Forward foreign exchange: Calculating forward foreign exchange rates; Discounts and premiums; Covered interest arbitrage; Foreign exchange swaps

Derivatives in the Foreign Exchange and money markets

• Money market derivatives: Forward rate agreements; interest rate swaps; Short term interest rate futures (STIRs); Short term interest rate options
• Foreign exchange derivatives: Foreign exchange futures; Foreign exchange options; Non-deliverable forwards (NDFs)