Treasury Management Overview
Corporate strategy and the treasurer
Understanding where corporate value comes from
The role of the treasury and treasurer:
o raising capital
o managing bank relationships
o money management
o managing (corporate) risks
Treasury organization and structure
A treasury control framework
Treasury performance management
Complying with Sarbanes-Oxley
Corporate credit ratings
Capital Markets & Derivatives Training specialize in developing and delivering bespoke in-house training
courses and programs. This sample course outlines the content and structure of a typical course.
Objective:
This course sets out to provide delegates with a comprehensive understanding of how to
manage treasury affairs with a detailed look at the various financial markets and instruments
that can be traded.
Course aims:
Explain the role and objective of the treasury operation
Show how to manage cash flows and different types of risk
Explore the different ways of raising debt and financing
Cash Management
Cash management objectives
Cash flow forecasting
Working capital management
o Why working capital is important
o How working capital can be optimized
Excess liquidity: short-term investing
o investment objective
o investment policies and guidelines
o the investment decision process
o deciding on the maturity structure
Using longer-dated instruments: rolling down the curve
Short-term borrowing
o policy and objectives for short-term borrowing
o short-term borrowing instruments
Raising Capital (1)
Loan Finance
Types of loan finance
o committed v uncommitted facilities
o bilateral/syndicated/cub
o term/revolver
Issues in loan documentation
o availability
o fees
o margins
o gross-up provision
o representations and warranties
o covenants (undertakings)
Debt securities
Raising funds with long-term debt
o rolling CP programs
o MTN programs
The Eurobond market
Methods of issuing securities
Public offerings v private placements
Bond issuance via syndication
Advantages and disadvantages of debt securities
Introduction to Bond Risk Management
Why measure interest rate exposure?
What influences a bond’s price
Macaulay duration
The convexity adjustment
Present value of a basis point
Raising Capital (2)
Equity Funding
Equity instruments
o ordinary shares
o preference shares
o warrants
Issuing equity in the primary market
o underwriting v book-building
o stabilization
Secondary offerings
o pre-emption rights
o placements
o rights issues
Managing the equity base
o bonus issues
o share buy-backs
The role of dividend payments
o Alternative Forms of Financing
Asset finance: secularization
o what is secularization and why securities?
o what can be secularized?
o who should securities?
o case studies of secularization deals
Asset finance: leasing
Project finance
o rationale
o sources of project finance
Risk Management
Guide to Risk Management
Why manage financial risk?
Principal treasury related financial risks
The management of financial risks
o identification of financial risks
o measurement and ranking of treasury risks
Managing risks
o best practice reporting
Enterprise risk management
Accounting issues: IAS 32 and 39; FAS 133
o Currency Risk Management
Identifying the risks
o accounting risks: What they are and why they are important
o pricing risks
o strategic risks
Using forwards and FX swaps
Using options
“Exotic” variations