Quick Guide to Treasury

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Presentation transcript:

Quick Guide to Treasury FAISAL SARWAR

4 Ways Treasury Make Money Taking Risk Market risk Speculator Franchise Bid-Offer spread Transaction volumes Transfer Pricing Hedging Arbitrage Risk Free profit

Who work with Treasury Dealer Sales People Risk Manager Operations Senior Management Finance & Accounting Internal Audit Information System & Technology

Accrual Accrual Interest Actual/360 & Actual/365 ALCO Alpha Return over index American Style Option Arbitrages Asset Banking Book Asset purchase for long term investment Base Rate BOE discount rate Basis Point 1 basis point is equal to 0.01%

Certificate of Deposit (CD) Clean Price Collar Collateral Basis Risk Fluctuation in their profit & loss Bearer Bond Bid/Offer Spread Bond Capital Market Medium & Long term Caps & Floors Certificate of Deposit (CD) Clean Price Collar Collateral

Commercial Paper Confirmation Coupon Credit default swap(CDS) Credit risk Currency swap Dirty price Discount factor Discount rate Duration

Euribor Fed funds Floating rate Forward rate agreement Forward transaction Future Haircut Hedge fund Hedging Interest rate swap Internal rate of return

Leverage Liability Libid Libor Limits Liquidity Long position Margin Market risk Mark-to-market (MTM) Medium Term Note (MTN)

Money Market Netting Operational Risk Operations Options Over-the-counter (OTC) Present Value Primary Market Rating Rating agency Recovery Rate

Registered Bond Repo Rate Repurchase agreement Reverse repo Secondary market Segregation of duties Settlements Settlement risk Sharpe ratio Short position Special purpose vehicle (SPV)

Spot Swap Swaption Trading Trading book Treasury Bills Value at risk (VaR) Volatility Yield curve/term structure Zero coupon bond

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