Basically title. I've done a bit of reading and I think that corporate treasury sounds interesting, but I was wondering if anyone on here has actual experience on the field or something and can describe what a day to day routine is like. I have a small understanding on what they do, but I want to see if I'm understanding it correctly/if someone can describe it in better detail.
Thanks
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I'll preface this by saying I don't work in corporate treasury but I meet with them about once a month at a F500. That said, my information is incomplete at best.
The industry they are in is a HUGE determining factor to what they do but generally they function on 3 fronts:
They handle a lot of investor relations and high level reporting (quarterly earnings calls etc goes through them) and may handle raising capital
They invest cash lying around and manage any trust portfolios depending on the company
They manage the corporate assumptions for regulatory capital requirements (mostly if they are a bank)
In a nut shell it could be a shitty reporting job or it could be a pretty sexy job depending on what you get assigned, kind of like most corporate finance gigs.
Is corporate treasury just glorified (or maybe not depending on preferences) prop trading then? When you say invest money, are you talking about projects/new business ventures to help the business grow or is it just investing a portfolio of stocks, bonds, etc. that the company owns, like an internal prop trading desk? If its the later, why wouldn't you just do trading at a bank instead?
Corporate treasury teams are usually tasked with various things (below I've tried to capture most of the things that they do, however, it may not be fully exhaustive and will vary significantly by company): - Manage the firm's capital structure (manage commercial paper/bond issuance, stock buyback, etc.) - Manage the dividend program (if they have a dividend) - Cash management (i.e. managing bank accounts, transfers of cash, making sure there is enough cash in all of the subsidiary accounts for payroll, investments, etc.) - Collections (accounts receivable) - Foreign exchange hedging (some trade in-house others outsource to major BBs) - Short-term and long-term portfolio management (some trade in-house, others outsource to major BBs, others outsource only pieces of their portfolio - equities, fixed income, etc., some outsource and may have an overlay strategy that they manage in-house) - Manage strategic investment porfolio (if the company has one) - Manage alternative investment portfolio incl. commodities, etc. (if the company has one) - Some manage corporate pension fund and make PE LP commitments (if the company has a pension fund)
Treasury can also include cash management in regards to working capital needs. Within this it can involve working with accounts receivables and accounts payable.
Aggravate said it well
EDIT: Harvardgrad defined it perfectly
If you are interested in corporate treasury I would focus on places like Google, Apple, Microsoft, etc. that are known to have top notch corporate treasury programs that trade almost exclusively in-house, manage large amounts of cash, generally have large buyback programs, invest in various types of assets (you'll find the vast majority of companies invest primarily in short-term bonds, etc. while places like these invest in equities, fixed income, commodities, alternative investments, make strategic investments, etc., etc.). This will give you great exposure to a ton of different aspects of treasury and will make you very well rounded.
Harvadgrad08 is pretty spot on here. I would only add that even for the companies listed most of the investing is short term high grade fixed income. Most of these companies are pretty transparent in their quarterly filings regarding just how conservative they are being with their corporate cash. You would also be suprised with just how small the teams are at these companies managing billions of $s.
boscfa is right even these companies invest most of their cash in short term high grade fixed income...however, these places at least have portfolios that touch other assets (while most companies really don't). Even if we assume only 5% of their cash is in equities, alternatives, strategic investments, etc. that still means that it's a multi-billion dollar portfolio.
Regarding the size of these groups you can expect most of then to be in the 20-30 person range.
hgrad08, if you have time, can you make a short post covering the different areas in corporate finance since you're now WSO's authority on the subject. I think it could be very beneficial and avoid redundant threads.
His earlier thread was extremely informative. I don't know if you have already seen it, so I linked it
http://www.wallstreetoasis.com/forums/the-other-road-corporate-developm…
Jeffrey - I had actually posted a description of most of the areas in corporate finance in the other thread you started :)
http://www.wallstreetoasis.com/forums/best-way-to-executivejunior-exec-…
Not sure if this was already mentioned, but a lot of treasury groups do securitization work.
Haha I definitely didn't see that newer post. Thanks for responding again. I really hope the mods will open up a corp finance forum though because there is an obvious need for it. Otherwise, I wonder if the mod can sticky that one post since I think it'll be useful.
f500 treasury? (Originally Posted: 11/22/2009)
Anyone know about the exit ops/ potential comp for treasury work in a f500 company?
I tried using the search but nothing came up.
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Treasury Analyst Position at F500 (Originally Posted: 06/21/2012)
Hi all,
I was wondering if you guys can comment on this entry treasury role at F500?
Responsibilities:
Liquidity & Interest Rate Risk Management Responsible for ongoing monitoring of liquidity and funding requirements. Responsible for budgeting and forecasting interest expense. Prepare monthly packages for Asset Liability Committee and Enterprise Risk Management Committee on Liquidity & Interest Rate Risk.
Securitization Program Management
Capital Management
Market Research and Analysis
I can't imagine you could jump to a more senior treasury FO role without actual treasury experience. Plus I am not sure if the role involves actual trading with MM/IR instruments (nor FX) or just monitoring and calculating positions.
Seems like an ok gig though if you want in the biz.
Thanks. I personally don't think this job involves any fx trading... at closest probably FX hedging for positions.
This is solid, treasury is often overlooked and under appreciated..
I support our treasury desk at a BB and arguably the FO guys have the best deal in the biz. A lot more laid back than our IB repo traders.. PM me if you have further questions
PMed :) thanks!
anyone moreinputs?
I heard treasury at a F500 type company is extremely boring. I'm not sure how true it is.
I heard it is similar to the accounting department, full of bores. And you will be making accounting type salary.
Nope. FO roles can be very thrilling and got nothing to do with accounting. Salary depends on role as well.
Treasury is FO?
Large treasuries have FO (trading/dealing), MO (risk/systems development) and BO (settlements and accounting).
Check Google or BP for example, they have their own trading floors.
The reason for your lack of knowledge is the lack of transparency - treasury is a support function for business (but value preserving/generating) and often not much talked about.
Is this a solid entry-level treasury opportunity? At an F500 (Originally Posted: 12/17/2012)
I got an initial phone interview for this position on Thursday. What piqued my attention was that it involved treasury and forex hedging, which I would find interesting. What concerns me is the "operations" title and now making me wonder how much upward mobility a position like this has.
Any input most appreciated.
Responsibilities from the job ad:
As a FSC Operations Analyst, you will assist our Global Treasury team at a tactical level with responsibility for the following: · Performance metrics ·Ad-hoc analysis ·Bank fee analysis and allocations ·Maintenance of global FX rates, FX back office support and enablement with FX trading partners · Bank Account Management (BAM) · Master data set up · Controls related monitoring and SOX /audit responses · Managing external reporting requirements.
This position will also assist with departmental projects, and interact with a number of internal customers and external partners to ensure customer satisfaction with data requests and Treasury services.
The primary accountability for this position will be the metrics and analysis which includes the creation of monthly performance metrics and an expectation to continuously check and adjust those metrics per business requirements. Secondary accountability is the management of FX back office activities while working closely with FX front office. FX back office activities include confirming, matching and netting of FX trades, with an expectation that any trades that are unmatched must be researched and discrepancies resolved within the same trading day.
Lastly, you will adhere to and educate others on internal controls and policies and procedures that appropriately safeguard assets. This position will assist with information gathering for internal and external audits and support those control activities identified in procedural documentation.
Great Nike job. Thanks I'm going to apply for this one. J.K.
Looks pretty good.
source: interned at an F500 treasury dept
Looks like a TM position at a non financial. Not the best for getting to Wall Street, but if you need a paycheck; it would be a job to keep you plugged into the global currencies.
Not familiar with the abbreviation TM...can you clarify?
Some back story maybe to clarify: I'm in wealth management now, been trying to move over to equity research (unsuccessfully) either on the buy side or sell side, and my game plan at the moment is MBA after I finish Level 3 of the CFA Program. I'm at a local boutique so there isn't really internal transition opportunities. I was thinking this would be a good enough fit between now and MBA but wanted to see what you all thought with the community's more experience.
Whats up,
The role indeed sits in the treasury dep of a large multinational (hence fx) but in a back office capacity.
Good for moving into treasury fo/mo roles. (fo=trading, funding, dealing and mo=system support, risk mgt, etc). Also good for getting a large corporate name on your cv for mba. Pm with specific questions if you need more info.
TM = Treasury Management
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