Foundations of Treasury Management

Introduction

• Welcome to the course: Treasury management

1. Treasury Management and Financial Institutions

• CEO, CFO, and treasurer
• Traditional banks: Bank of America and BNP Paribas
• Investment banks: Goldman Sachs and Credit Suisse
• Investment funds: Vanguard and Berkshire Hathaway

2. Short-Term Capital Management

• Operating cycle
• Cash budget: Managing collections and disbursements
• Managing receivables and inventory
• Obtaining short-term financing

3. Debt and Equity Markets

• Introducing securities markets
• The difference between a stock and a bond
• Stock markets
• Bond markets

4. Cash Flow Forecasting

• Starting with a sales forecast
• Forecasting operating cash flows directly related to sales
• Forecasting capital expenditures
• Prediction and simulation

5. Risk Management

• Different types of risk
• Measuring risk: Value at risk
• Hedging
• Derivatives

6. Capital Structure

• Factors influencing optimal capital structure
• Raising long-term capital
• Weighted average cost of capital (WACC)
• Alternative financing: Leasing

Conclusion

• Impact of technology