Lecturer: Derek Taylor
Day-to-day cash management is critical in today’s low interest environment. We will review the fundamentals and essentials of forecasting, value dating, calculating interest costs, and various payment systems. Cash concentration techniques including sweeping, pooling and netting will be discussed and how to get the best rates from your banks. This course will be useful for bankers, treasurers and their staff, cash managers, auditors, accountants, financial control, fund managers, bankers.
PROGRAMME
WHAT IS CASH MANAGEMENT?
- Value-dating
- Forecasting
- Payments and receipts
- Moving money between accounts
- What is “float” and how do I reduce it?
Collection->Disbursement->Management
CASH MANAGEMENT POLICY AND PROCEDURES
- How much liquidity do we need and where do we source it?
- Cost of Liquidity
- Trade Off: safety vs liquidity vs yield
- How often should we re-tender the business?
FORECASTING - WHY BOTHER?
Timely, accurate reliable in order to:
- Maximise earnings
- Have advance warning of problems
- Minimise funding
Range of forecasts:
- Short (operational)
- Medium (tactical)
- Long (strategic)
CASH MANAGEMENT ESSENTIALS
- The role and use of LIBOR, Base, Overnight
- Interest calculations: day counts, accruals
- Principles of Value Dating: “good value”, back-interest/back-valuing
- How payment is made: RTGS, BACS, CHAPS, CHIPS, SWIFT,
CASH CONCENTRATION TECHNIQUES
- Sweeping, pooling, netting
- Target and zero balancing
INVESTING IN THE LONDON MARKET
- Market participants and their motivations:
- Banks, brokers, building societies, corporates and institutions
- The need for quality information
THE INVESTMENT SPECTRUM
Definition and key features of:
- Treasury bills
- Certificates of deposits (CDs)
- Term deposits
- Commercial paper (CP)
- Money market funds (MMF)
Applications and examples
INVESTOR RISK
- How safe is my investment?
- Investor protection
- Which banks shall I use?
- Understanding market signals
- Use of credit ratings
- Getting the best rates on the day
One day course 09.30 – 17.00
| Scheduled Course Date |
|
15 October 2012
|
