Cross Selling Treasury Products - Online Course

About the Course

The course begins with an explanation of each of the five core themes of selling treasury products. The calculation of pre-settlement risk exposure is then discussed. This is followed by a real world case study for an oil refinery, where exposure, margin short fall & inventory losses are estimated and likelihoods of occurrence are presented for assessment of risk appetite and determination of product portfolio pricing & structure. Common foreign exchange & fixed income transaction types that are a part of the Treasury Marketing Unit (TMU) operations are described. Customer reactions to these product offerings are discussed which is then followed by a products and strategies used to address these concerns and objectives. The course concludes with an overview of a number of exotic options.

Learning Objectives

After taking this course you will be able to:

• Explain each of the 5 core themes of selling treasury products
• Define the concept of suitability
• Discuss the importance of adequate documentation
• Evaluate the types of customers in relation to their degree of knowledge of the product
• Define the dimensions of price
• Explain the types of models for calculating value
• Discuss the “hard right edge” and its relationship to the predictive quality of a model
• Describe relative value and how it is used
• List the factors determining customer reaction to different product recommendations
• Define pre-settlement risk & potential future exposures and the difference between them
• List the various terminology for volatility
• Explain implied and trading volatility
• Discuss the flight to safety concept
• Outline the calculation of the client’s exposure, worst case loss scenario & pre-settlement risk exposure
• Discuss the impact of correlation on & the importance of qualifications to the model
• Estimate the exposure of an oil refinery using the information on the price changes in inputs & outputs,
• Discuss how these price changes impact profit margin shortfalls & inventory losses, in particular, the likelihood that they are is in excess of a given threshold; how odds/ probabilities are to be presented for board of directors assessment of risk appetite and determination of product portfolio pricing & structure.
• Describe common Foreign Exchange & Fixed Income transaction types that are a part of the Treasury Marketing Unit (TMU) operations
• State reasons & objectives for estimating exposures and the amount at risk for each of these transaction types
• List the common customer reactions to suggested product profiles and trades
• Graphically define & analyse product payoff profiles for options, forwards and other structured products
• Describe some products and strategies to address some of the customer reactions and objectives such as yield pickup, controlling down side risk, cost reduction & structured protection
• Describe a number of exotic options such as digital, barrier, Bermuda, Asian, lookback, quanto, compound, chooser, ladder & shout

Sample Video Content