Revision

Revision

• International Cash Management- Payables and receivables management- Money movement: Float, finality, value,

availability, NSS, RTGS- Bank account structures: When and where to

open currency accounts, lockbox, intervention accounts

RevisionFX Risk Management

• Types of exposure- What they are: Translation, economic,

transaction- Reading FX rates, what are points?- What ways to handle exposure?- Ways to cover: Forward, BSI, Lead- Pros and cons of different instruments- Other issues

RevisionFX Risk Management

• Swaps-How they work-When would we use them?• Options- Reading the rates, decisions on strategy: Strike price, expiry date, number of contracts

RevisionInterest Rate Risk Management

• What is it?• Instruments- Forward Forward Money, Futures, FRA’s, Swaps and Option types , caps/collars-Pros and cons of each

Revision

Short Term InvestmentThe investment decision- What factors should be considered before making short term investments?- Be aware of the instruments involved, the broad issues/features and where they fit- Be aware of the different conventions usedFor the exam, if Qs come up, then you will be expected to know:

RevisionInvestment cont

• How to work out effective rates on discounts• How to work out the proceeds from selling a

CD• Coupon or simple interest calculations• Yield to redemption i.e. effect of multiple

interest payments in a period on the real rate• How to adjust for Accruals basis

RevisionLiquidity Management

• Start with Forecasting- Purpose and problems- Methods: distribution, Receipts

/disbursements, Pro Forma, moving averages• Pooling, Cash Concentration and interest

enhancement• Netting

Revision

• Centralisation- Pros and Cons- Methods: Payment factory, collection factory,

re-invoicing, in-house factoring, in-house bank, shared service centre.

- Qs could be how do they work? What are the benefits and problems?

• Treasury function• Policy, performance, risk

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Revision

Best of LuckFor the Future and

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