Beacon FinTrain

Provides an array of professional business and financial training services that stem from improving a corporate's treasury workflow —all the way to efficient, finance training programs.

Course Overview

This course aims to explain the role of the Treasury and ALM functions. It also explains how the function seeks to improve balance-sheet performance by more selectively allocating balance-sheet resources. Furthermore, it investigates the fluid regulatory landscape in which ALM operates and outlines what the industry considers best practices in dealing with the challenges that landscape presents.


For More Inquiries

Dalia Anwar

Country Sales Manager

 +201277044024

 d.anwar@beacon.com.eg

Dalia Anwar

Country Sales Manager

 +201277044024

 d.anwar@beacon.com.eg

Course Outcome

Define financial markets and explain their main functions for the economy

Define foreign-exchange markets, money markets, and capital markets

Distinguish between cash/spot and derivatives/forward markets

Describe the main features of the basic types of cash money market instrument in terms of whether or not they are transferable or secured in which form they pay return

Outline generally accepted terminology to describe the cashflows of each type of instrument and understand basic dealing terminology

Course Outline

Topic 1 :Financial Markets, (Rates, Fixed Income and FX)

Financial markets and their main functions for the economy

Foreign-exchange markets, money markets, and capital markets

Cash/spot and derivatives/forward markets

Regulated markets and OTC markets and understand how both functions work

The “big figures” and the “points/pips” in a currency pair

Bid/offer spot exchange rate as price-maker and as price-taker to calculate either a base or quoted currency amount

The basic dealing terminology and characteristics of FX spot, FX outright forward, FX swap and forward-forward FX swaps

Cross-rates from a given pair of exchange rates with all the possible combinations between base and common currencies

The reciprocal rate of an exchange rate

The mechanics and roles of benchmark fixings for FX rates

FX outright forward rate from a FX spot rate, interest rates and/or the forward points (and vice versa)

The relationship between the outright forward rate, the forward points, the spot rate and interest rates, including the concept of interest rate parity as well as the concept and possibility of covered interest arbitrage.

Topic 2 :Define the money markets and interest rate capital markets

The main features of the basic types of cash money market instrument in terms of whether or not they are transferable or secured; in which form they pay return (i.e. discount, interest or yield); how they are quoted; internationally recognized minimum and maximum terms; and the typical borrowers/issuers and lenders/investors that use each type

Generally accepted terminology to describe the cashflows of each type of instrument and understand basic dealing terminology.

Present value and/or future value using the arithmetic techniques of discounting and/or compounding for a money market instrument terminated at maturity and/or for one that is rolled over at maturity

Simple interest rates using different day count and annual basis conventions, identify the international day count and annual basis conventions for the currencies of the G20 countries

Conventional frequency and timing of payments for cash money market instruments, including those with an original term to maturity of more than one year

Broken dates and rates through linear (straight line) interpolation

Interest rate indices, their methodologies and outline the most internationally used benchmark indices in the rates’ markets

Interest rates and yields between the money market basis and bond basis in currencies for which there is a difference, and between annual and semi- annual compounding frequencies.

The value of a discount-paying money market instrument from its discount rate (straight discount) and calculate a discount rate directly into a true yield

The various shapes of a yield curve and basic changes in its shape using market terminology and outline how the shape of the curve can be explained by theories and hypothesis (market segmentation, liquidity preference and expectations)

The main characteristics of bond instruments as fixed-income securities and their roles in the function of interest money markets

Domestic, foreign and euro currency (offshore) money and bond markets and describe the principal advantages of euro money market instruments

Coupon bonds, zero coupon bonds, covered bonds, sukuk bonds, junk bonds, bond indentures, callable bonds, convertible bonds and floating rate bonds

Differences and similarities of classic repos and sell/buy-backs in terms of their legal, economic and operational characteristics

The main types of custody arrangements in repo

The value of each type of instrument (except bond instruments) using quoted prices, including the secondary market value of transferable instruments

Present and future cashflows of a repo given the value of the collateral and an agreed initial margin

Haircuts and calculate the present and future cashflows of a repo given the value of the collateral and the usage of haircuts

General collateral (GC) and specials

The main characteristics and objectives of short selling strategies

Calculate a forward-forward rate from two mismatched cash rates and a cash rate from a series of forward-forward rates for consecutive periods.

Topic 3 :Market Risk in the trading Book

Risk relevance characteristics of the Basel Accords.

The main risk factors for: Market, Credit, Liquidity, Operational, Legal, Regulatory and Reputational risk.

Types (Interest Rate, Equity, Currency, Commodity) and components (Position, Settlement and Counterparty).

How Market Risk arises in the Trading Book.

Key concepts of Value at Risk and its quantitative techniques.

The sensitivity tools for Market Risk: duration, basis point value and greeks.

Limit structures in the dealing room.


Who Should Attend

Finance professionals willing to shift to the treasury department

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