Browse By

Monthly Archives: November 2011

No Thumbnail

Treasury training – Selling exotic options to corporate treasury customers

Instances and examples of a range of exotic contracts such as Digital, Barrier, Asian (as well as Bermuda and Mid-Atlantic), Lookback, Quanto, Compound option, chooser options, Ladder and Shouts. All variations on contracts that allow a customer to do a hand full of things that we’d addressed earlier such as adding yield, limiting downside, providing structured protection, and reducing cost.


Treasury E-Learning: Dissecting Treasury products with payoff diagrams

Your challenge working as a treasury professional is to take this term sheet and turn it into this payoff profile. If you do this successfully, you would do exceedingly well because you would understand what the counterparty, what the competition sitting on the other side has done by combining A+B+C. You would read this structure and immediately know that they have taken one part A, one part B and one part C and have sold the customer something called D. But if you can’t this term sheet and translate it into this diagram then you will always be clueless about what exactly has gone into D. And if you are clueless about what has gone into D you can’t price it. If you can’t price it, you can’t value it. If you can’t value it, you can’t compete against it.

No Thumbnail

Treasury Training – E-learning course: Introduction to Treasury selling and the TMU function

To summarize, the principle objective of estimating the amount at risk in each of these transactions is to determine how the transaction should be structured and what would be the impact of the structure on cost both out of pocket and explicit cost as well as implicit cost and what is the long range impact on the customer’s portfolio and profile of the structure that you have suggested.

No Thumbnail

Old Friends – The APICTA connection

Over the years the Asia Pacific ICT Awards has been the breeding grounds for many friendships across countries and continents. Sometimes we meet as judges on the same panel, inspired by the brilliance of candidates we are evaluating. Before we were judges a number of

No Thumbnail

Oil and Gold Models workshop – Bangkok, 14 November 2011

The workshop focused on building models for oil and gold and also reviewed some of the associated risk limits with an emphasis on Pre-Settlement, Stop Loss, Transaction and Expectation driven limits. We reviewed price, volatility and relative value models and also took a look at fundamental drivers of pricing for Gold and Oil.