| Day one
Treasury Management & Policy
Functions and role of a treasury within a corporate organisation structure, policy, objectives, risk profile, control.
Interest Rate and Exchange Rate Determination
Mechanics of both domestic and foreign exchange markets, Government policy issues.
New Zealand Debt Market
Funding mechanisms used by banks, government and corporates. Read from a pricing screen, value discounted instruments construct the New Zealand yield curve.
Interest Rate Risk Management Instruments
Use of treasury products to manage interest rate risk including:
Forward Rate Agreements (FRAs), Interest Rate Swaps (IRSs) and Interest Rate Options (IROs).
Workshop for borrowers / investors
Overview of accounting and tax principles.
Commodities
An introduction to commodity risk.
Commodity risk management products and markets.
The importance of understanding 'basis risk'.
Spot Foreign Exchange
Quoting foreign exchange including:
Direct/indirect quotes, two way pricing and cross rates.
Workshop for exporters / importers
Overview of accounting and tax principles.
Dealing Simulation
Hands on experience of FX dealing, two way price making, "position keeping" arbitraging. |
Day two
Fundamental Outlook
Analyses the outlook for foreign exchange and interest rates using fundamental analysis.
Forward Foreign Exchange
Calculation of forward rates, forward cross rates, broken and short dates.
Workshop for exporters / importers
Overview of accounting and tax principles.
Foreign Exchange Options
Introduction to terminology, what determines premium amounts.
Practical pricing session.
Workshop for exporters / importers
Overview of accounting and tax principles.
Treasury Reporting & Control Processes
Discussion on recent developments in treasury accounting and impending IAS39 changes along with treasury policy, internal controls and systems topics.
Case study
Practical Policy Implementation
Developing a risk management strategy within the policy framework.
The importance of instrument selection.
Tactical execution.
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