The treasury operations and products course is a mix of core topics and four separate applications. Three of the applications deal with trading product families while the fourth deals with forecasting monetary policy (interest rate rise and cut decisions). Of the core topics the primary
Forecasting the monetary policy The next monetary policy announcement is due in the last week of May 2010. We attempt to forecast the cut in the policy discount rate by looking at oil prices, the relationship between oil prices and imports, exports, remittances, the current
Option Trading Strategies refer to a combination of trades that can be used to reduce premiums, reduce downside, reduce upside, increase leverage, reduce leverage or a combination of one or more of the above elements. We start off with a review of the simplest of option trades and then use them as building blocks for other more complex combinations.
Settlement Settlement entails carrying out a series of duties in respect of all transactions emanating from the front office effectively leading to making an actual payment. Settlement risk is the risk that after having sent the payment instructions, there is a delay in receiving the
Liquidity enhancement tactics For Systemic Crisis Liquidity management tactics may include the following: Do not plan to rely on selling assets during cyclical peaks or credit crunches As a cushion for capital market disruption hold very high quality assets such as treasury securities Manage the