Fundamentals of Treasury and ALM

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.

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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.

Details

Developed by: Beacon FinTrain
Total Hours: 30 Hrs
Language: English - Bilingual "English & Arabic"
Modalities: 
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Outline

  • 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.

  • Risk relevance characteristics of the Basel Accords
  • The main risk factors for: Market, Credit, Liquidity, Operational, Legal, Regulatory and Reputational risk
  • Market RiskTypes (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.

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Who Should Attend

  • Finance professionals willing to shift to the treasury department

Why Beacon

Quality

Beacon FinTrain prioritizes excellence in every service, ensuring top-notch, reliable, and consistent outcomes that meet and exceed client expectations.

Specialization

We focus on finance, offering expert knowledge and bespoke solutions that cater to the unique needs of finance professionals in the Middle East and Africa.

Punctuality

Time is money. We respect deadlines, delivering precise and timely results to help our clients stay ahead in the fast-paced financial world.

Guidance

Beacon FinTrain is a guiding light in finance, providing insightful advice and support to navigate the complexities of financial markets and regulations.

Integrity

We uphold the highest ethical standards, fostering trust and transparency in all our dealings to build lasting relationships with clients.

Flexibility

Adapting to the dynamic finance sector, we offer versatile services and solutions that align with the evolving needs of our clients.