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Corporate Treasury – Hedging Interest Rate, FX and Commodity Risk
Overview
This 2-Day programme will equip you to use and manage forwards, futures, swaps and options to manage corporate treasury risks.
The course starts with a detailed review of corporate treasury risks, including interest rate risk, foreign exchange risk, and commodity risk.
We then cover the key derivative products that can be used to hedge specific corporate treasury risks – forward contracts, futures contracts, interest rate swaps, currency swaps, foreign commodity options, foreign exchange options, caps, floors, collars and swaptions.
The programme includes extensive practical Excel drills and solutions which participants can take away for immediate implementation.
Learning Objectives
Be able to identify key corporate treasury risks
Understand value at risk (VAR) and how it is used to quantify corporate treasury risks.
Understand how forwards are priced, and how corporates use them to manage risks
Understand futures and the futures market, and how to hedge using futures
Know how interest rate swaps can be used to hedge floating rate interest rate risk
Know how currency swaps are used and understand how they are used to create synthetic debt
Understand the mechanics of option products – calls/puts, definitions, payoffs
Know the classic option combinations used to create collars and zero-cost collars
Understand how caps and floors can be used for hedging
Understand the mechanics of swaptions and how they are used for pre-hedging a bond issue
Who the course is for
This course is designed for anyone who wishes to be understand corporate treasury risk and how they can be hedged
Corporate treasury managers
Sales & trading corporate derivatives sales
Debt capital markets professionals wanting to understand the corporate treasury perspective
Risk managers
Lending bankers who need to understand the corporate treasury risks of the clients they lend to and their use of derivatives
Compliance professionals who need to understand corporate treasury deals
