All about Treasury/ Corporate Treasury!
Hello Everyone,
I searched through the forum and could not find much structured info about treasury. So wish to compile scattered info about treasury. Anything from what is treasury? entry barriers, how to be a treasurer, salaries, best organizations to work with, exit options, relevant certifications / courses and so on, Challenges as a treasurer ..
My two cents from what I know,
Basics: Treasury / corporate Treasury is a dept of bank or any company which does some/ all of following functions (list varies from company to company)
- Cash Management
- Working Capital Management
- Raising finances, investing funds in multiple currencies and in multiple financial instruments
- Risk Management
- Forecasting
- Reporting
- Relationship management with bankers and other investors
- One time investments (projects), M&A
- As a treasurer work with CFO for capital structurer / strategy
IMO the hierarchy goes like this:
Treasury Analyst/ sr Treasury Analyst/ Assist to Treasurer (don t know exact role name) Treasurer
Exit Options:
Pvt consultancy,sr positions in corporate banking, M&A specialist, anything related to risk mgmt, I guess PE and VC should also work.
I know all this is very basic stuff, but I request all the srs to contribute further also add related forum.
Like MSFin, I've compiled what I've found:
Treasury Role-1. Cash Forecasting
Treasury Role-2. Working Capital / Capital Management Ensure that sufficient cash is available for operational needs. • If insufficient cash, raise capital • If excess cash, invest it o matching the maturity dates of investments with a company’s projected cash needs o maximize return while taking on a minimum level of risk (and possibly make strategic investments)
Treasury Role-3. Risk Management Hedging tactics to mitigate the whole company’s risk: • rise in interest rates (and associated payments) • ForEx rates
Treasury Role-4. Financial Management Align capital raising/allocation strategies with corporate strategy. What for example is the most appropriate capital structure? How are potential investments appraised? Is an asset providing the required return and if not should it be disposed of?
Treasury Role-5. Relationship Management: Credit Rating Agencies and Banks
Treasury Role-6. Operations & Controls: - Act as the company’s bank account (e.g. handling collections, payables, dividends etc.) - Institute controls to manage points 1-4
Regarding the size of these groups you can expect most of then to be in the 20-30 person range.
The Treasury/Money Markets Path (Originally Posted: 04/29/2011)
I recently finished Marcia Stigum's Money Markets and I'm currently reading Eurdollar Futures & Options by Burghardt and I was wondering whether anyone had some suggestions as far as good money market careers.
I'm waiting on a couple grad school apps for Msc in Finance (LSE and Bocconi) and I'm trying to figure out what types of positions to focus on. I've been reading up on the short-end of the yield curve because it affects the pricing of virtually everything else and it seems that a sophisticated treasury department or a money market/fx desk at a BB would be ideal places to trade macro products and potentially move on to the buyside. Does anyone know of people who have made this kind of transition and what banks might have sophisticated enough treasuries that would prepare me for the buyside?