Treasury Video 2017-11-27T09:30:20+00:00

Cross Selling Treasury Products


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.

This course consists of five lessons:

  • Lesson 1 – Cross Selling Treasury Product: 5 Core themes for our discussion
  • Lesson 2 – Working through numbers – Introducing Value at Risk and PSR
  • Lesson 3 – The Petrochemical Case Study: Estimating Client Exposure
  • Lesson 4 – Core Treasury products and TMU customer reactions
  • Lesson 5 – Vanilla and Exotics Derivative Contracts – A Quick walkthrough

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 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 downside risk, cost reduction & structured protection
  • Describe a number of exotic options such as digital, barrier, Bermuda, Asian, lookback, quanto, compound, chooser, ladder & shout
The candidate should be familiar with basic derivative products and their pricing and be comfortable with basic mathematics, statistics, probability and EXCEL.

This course is targeted at intermediate and advance users and is aimed at banking, corporate, treasury and sales teams, relationship and account managers that offer or present derivative products as part of their marketing and sales efforts and repertoire.

Cross Selling Treasury Products

  • Video course