Treasury and Money Market Instruments: A Foundational Training Course

Introduction

Effective treasury management is essential for any organization, ensuring adequate liquidity and prudent risk management. This training course provides a detailed exploration of the key instruments used in treasury and money market operations. Participants will gain a fundamental understanding of how instruments like Treasury bills, commercial paper, and repurchase agreements are used to manage short-term cash flows, raise funds, and invest surplus capital. The program is designed to equip finance professionals with the practical knowledge to make informed decisions in a fast-paced financial environment.

Beyond the mechanics of individual instruments, this course delves into the strategic context of the money markets. We will examine how central bank policies, regulatory frameworks, and global economic trends influence the availability and cost of short-term funding. Through a combination of theoretical knowledge and practical case studies, participants will learn how to analyze market data, evaluate risk, and apply best practices in their own treasury operations, ensuring the financial health and stability of their organizations.

Target Audience

  • Corporate treasury staff
  • Financial managers and analysts
  • Commercial bank treasury professionals
  • Risk managers and compliance officers
  • Investment and portfolio managers
  • Students of finance and economics
  • Public sector finance officials
  • Financial journalists

Duration

5 days

Course Objectives

Upon successful completion of this training, participants will be able to:

  • Explain the functions and characteristics of key treasury and money market instruments.
  • Analyze the role of the money market in liquidity management.
  • Describe the processes for issuing and trading short-term instruments.
  • Evaluate the risks associated with money market instruments.
  • Discuss the impact of central bank policies on money market rates.
  • Apply strategies for effective cash and investment management.

Modules Course Content

Module 1: The Foundations of Treasury Management

  • The role and objectives of a treasury function
  • The components of the treasury balance sheet
  • Cash flow forecasting and management
  • Liquidity management principles
  • The link between treasury and corporate strategy

Module 2: Money Market Instruments: Overview

  • Defining the money market and its participants
  • The purpose of money market instruments
  • Key types of instruments (e.g., commercial paper, T-bills)
  • The role of short-term interest rates
  • The relationship between the money market and the central bank

Module 3: Treasury Bills and Government Securities

  • The structure and characteristics of Treasury bills
  • The auction process for government securities
  • The role of Treasury bills as a risk-free rate
  • The pricing and yield of short-term government debt
  • The relationship between sovereign debt and monetary policy

Module 4: Commercial Paper and Corporate Instruments

  • The purpose and issuance of commercial paper (CP)
  • The role of credit ratings in CP markets
  • Asset-backed commercial paper (ABCP)
  • The use of corporate bonds in treasury management
  • The process of pricing and trading corporate debt

Module 5: Repurchase Agreements (Repos)

  • The mechanics of a repo transaction
  • The use of repos for short-term funding and investment
  • The role of collateral and haircuts
  • Bilateral and tri-party repos
  • The impact of repos on market liquidity

Module 6: Certificates of Deposit (CDs) and Time Deposits

  • The characteristics of certificates of deposit
  • The role of CDs in bank funding
  • The difference between CDs and time deposits
  • The pricing and liquidity of CDs
  • The importance of deposit insurance

Module 7: The Foreign Exchange Market

  • The central bank's role in the FX market
  • Intervention strategies and their effectiveness
  • The management of foreign currency reserves
  • The impact of exchange rate regimes on market operations
  • The use of currency swaps and forward contracts

Module 8: Risk Management in Treasury Operations

  • Identifying and measuring liquidity risk
  • Managing interest rate risk
  • The role of credit risk in short-term investments
  • Hedging strategies with derivatives
  • Developing a robust risk management framework

Module 9: Money Market Funds and Investment Vehicles

  • The structure and purpose of money market funds (MMFs)
  • The use of MMFs for cash management
  • The regulation of MMFs (e.g., stable vs. variable NAV)
  • Investment policies and portfolio construction
  • The role of prime and government MMFs

Module 10: Case Studies and Best Practices

  • Case study of a corporate treasury's liquidity crisis
  • Best practices in cash flow forecasting
  • The impact of global financial crises on money markets
  • The transition from LIBOR to new risk-free rates (RFRs)
  • The role of technology in modern treasury management

CERTIFICATION

  • Upon successful completion of this training, participants will be issued with Macskills Training and Development Institute Certificate

TRAINING VENUE

  • Training will be held at Macskills Training Centre. We also tailor make the training upon request at different locations across the world.

AIRPORT PICK UP AND ACCOMMODATION

  • Airport Pick Up is provided by the institute. Accommodation is arranged upon request

TERMS OF PAYMENT

Payment should be made to Macskills Development Institute bank account before the start of the training and receipts sent to info@macskillsdevelopment.com

For More Details call: +254-114-087-180

 

 

Treasury And Money Market Instruments: A Foundational Training Course in Kenya
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