Treasury Risk Management Workshop

Through a combination of brief lectures and an intense simulation, this program will offer you an opportunity to experience, hands on, how today's treasurers develop and implement effective trading strategies in volatile foreign exchange and money markets.

Participants will build upon their knowledge of how all market participants hedge their currency and interest rate exposures, using derivatives markets and products.

18-Aug-2010 -- 20-Aug-2010New YorkUSD$3375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Janet Wilson; ] Wed Thu Fri Level: Intermediate

17-Nov-2010 -- 19-Nov-2010New YorkUSD$3375
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Janet Wilson; ] Wed Thu Fri Level: Intermediate

CPE CREDITS
21.5
This course is targeted to meet the needs of a basic to intermediate level audience, including bankers with a need to know more about how market risks are originated by all market players, how corporations use derivatives products to meet their hedging needs and how banks hedge those market risks in the foreign exchange and interest rate markets.
No advance preparation required.
Students will be able to:
  • Articulate and implement foreign exchange trading strategies
  • Create, report and manage cash positions, net exchange positions and interest rate gaps
  • Identify and describe the characteristics in spot, forward and cross-currency swpa contracts, as well as spot and forward yield curves
  • Perform accounting functions required to capture and manage net exchange positions and present/future cash flows
  • Calculate FX and money market profits and losses from trading
  • Present value underlying net exchange positions and interest rate gaps
  • Review options valuation theory and price sensitivities in binomial models, as well as perform basic stress testing and delta hedging techniques
  • Understand the effects of changes in the price of the underlying, volatility, time and interest rates on option premiums
  • Structure and price derivative solutions more commonly used for hedging interest rate and currency exposure
  • Perform comparative analysis between the use of forward hedges versus using options markets and products
Delegates are required to have a working knowledge of financial calculators (HP12C or HP17B preferred).
Day 1
Discuss structure, players and impact of economic fundamentals and events on foreign exchange and money markets

    Describe conventions for quoting and positioning in FX spot contracts and markets

      Review IR calculations, term structure of interest rates, yield curve analysis and MM gapping strategies

        Define rationale for controlling and managing IR and currency risks

          Global Trader Simulation rules/demonstration

            Trading Session I: Spot FX, cash balancing and MM gapping

Day 2
Review previous day's trading results

    Define structure of forward FX markets, no-arbitrage pricing techniques and methods of hedging

      Calculate forward outright prices and discuss no-arbitrage pricing techniques

        Define correction mechanisms used to eliminate arbitrages in forward markets

          Discuss reports and methods used for controlling and managing IR and currency risks in open and fully hedged forward positions

            Trading Session II: Spot FX, cash balancing, MM gapping and FX forwards

Day 3
Identify and discuss corporate exposure to interest rate risk

    Discuss structure, pricing methods and hedging techniques for managing IR swaps

      Review structure, pricing methods and uses for cross-currency swaps

        Trading Session III: Spot FX, cash balancing, MM gapping and FX forwards

          Identify and discuss corporate exposure to currency risk

            Structure corporate applications for hedging currency exposure using options contracts (caps, floors and collars)

              Review advantages/disadvantages between the use of forwards vs. options contracts

Clients who register for this course will receive a complimentary 3 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscription, call 800-628-8088 or email uscirculation@ft.com. U.S. enrollees only. (All non-U.S. enrollees will receive a subscription to FT.com only.)

Lunch included for all students taking day classes.