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SMU Advanced Certificate: Corporate Banking Solutions (IBF Level 2)

Module 2: Treasury Risk Management 

Learning Objectives
  • Gain an overview of trends and developments in the global financial markets
  • Understand a corporate’s perspective of financial risk management framework
  • Manage interest rate exposures using forward rate agreements and interest rate swaps
  • Use currency swaps to manage foreign currencies liabilities and assets
  • Know the factors driving the foreign exchange markets
  • Learn effective strategies to hedge foreign exchange exposures

1. Marketing Treasury Solutions 

  • Overview of treasury solutions
  • Financial Risk Management Framework – Corporate’s Perspective
  • Key drivers to client’s decision making
  • Corporate’s bank management strategies
  • Marketing & negotiation techniques

2. Interest Rate Management

  • Managing interest rate exposures
    • Capital structure framework
    • Optimising fix/floating mix
  • Forward rate agreements (FRAs)
    • Spot vs. forward rates
    • Applications
  • Applications of interest rate swaps (IRS)
  • Swap pricing & valuation
  • Currency swaps
    • Key elements and applications
    • Synthesizing currency swaps
    • Net basis vs. coupon only currency swaps
    • Benefit and risks in currency swaps 
  • Managing FX liabilities and assets using currency swaps 

3. Foreign Exchange (FX) Management

  • Understanding FX markets
  • Spot vs. forward FX rates
  • Hedging FX exposures
    • Recurring payables & receivables
    • Foreign currency assets & liabilities
    • Balance sheet hedging
    • Acquisition-related FX & interest rate exposure
    • Contingent FX exposure management
  • Key considerations when managing large FX hedging transactions

Last updated on 02 May 2018 .