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.

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Comments (79)

Mar 3, 2014 - 4:45pm

I was contacted by a headhunter recently about a treasurer-type role. I wonder how much there is opportunity to move up within corp finance to CFO->CEO type jobs at typical larger companies? Is that typical or is there another role that feeds into CFO? If there are obvious threads on this topic I have missed them, please just say so :)

Mar 3, 2014 - 6:38pm

I'm not in-industry, this comes from discussions I've had with people on the topic and extensive research.

Here's an interesting breakdown: http://www.russellreynolds.com/content/where-do-chief-financial-officer…

To quote one part of it (the whole thing is absolutely worth reading):

Russell Reynolds Associates:

From pure "analysis and allocation" to "global strategy and operations"

Recent CFO appointments point to a growing appetite among CEOs for three core career experiences: general management, strategy/corporate development and international.
---General management: Fifty-one percent of CFOs appointed in the last three years hold significant general management experience; in contrast, only 35% of CFOs appointed more than three years ago hold this experience.
---Strategy and corporate development: Forty-nine percent of CFOs appointed in the last three years hold strategy/corporate development experience; in contrast, only 22% of CFOs appointed more than three years ago hold this experience.
---International: Forty-three percent of CFOs named within the last three years indicate working outside the United States prior to their appointment; in contrast, only 25% of CFOs appointed more than three years ago hold this experience.

Further down it says most CFO's don't have all those experiences, but it seems like that's the future of the position. The CEO position is very different and really depends on the industry in many cases. A lot of the newly promoted CEOs seem to have recent, substantial general management experience (in charge of an important/large division). Honestly though, you know getting to CEO is a crapshoot, even at a mid-sized company.

It's also not unusual for someone to go from, say, Manager at an F500 to a Director or CFO role at a mid-size or even smaller company, and then come back as a Senior Manager or Director at the larger company (or maybe as a Manager in headquarters vs Manager at a division). It also isn't unusual for someone to move to a smaller company in the CFO spot and not get any hits trying to move back to a larger company. Everything comes down to your background and your luck (of course, the luck can be swung in different directions depending on the effort you put into it). There really is no cut-and-dry path after you hit Senior Financial Analyst.

There are a million routes to take, wish I had time to type out all the options. Really you just need to have a strong network, ask their advice, keep in contact with them, etc.

"You stop being an asshole when it sucks to be you." -IlliniProgrammer "Your grammar made me wish I'd been aborted." -happypantsmcgee
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Mar 5, 2014 - 9:42am

Great insight @D M and I totally agree, you can move in "n" no of directions after sr analyst kind of role. With regards to @"BirdTurglar", your question pertaining to treasury, I guess you can move up to the CFO lader after being Treasurer but here main point is your interest. If you enjoy working in treasury kind of environment and perform the treasury roles, you will find some direction to climb up the ladder post this particular job. Let me know what you think.

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Mar 24, 2014 - 12:14pm

Questions:
- What is in your opinion the best way to get into treasury?
- What is the treasury departments/roles where you get the widest range of "treasury experiences" rather than a narrow piece of the pie? Banks vs. F500 and others? Salary doesn't matter: Banks seem like the way to go for treasury, due to the obvious fact that alot of cash circulates through the business + investing, etc. But am I correct in this assessment?

Mar 25, 2014 - 10:17pm

IMHO,
- Best way is to get treasury related experience and always keep eye on treasury openings. Apply whenever you find one. I have heard they are very few and restricted to certain locations.
- I think best place is a organization (preferably a bank) which has huge multi currency transaction and frequent cash flows.
- I am not sure about pay scale but heard its good.

Best Response
Feb 1, 2016 - 11:46am

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.

Mar 5, 2017 - 1:43am
making_it_rain:

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.

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What is the difference between corporate treasury and working in the treasury department at an investment bank? Are the same thing?

Feb 1, 2016 - 11:47am

Info on Corporate Treasury? (Originally Posted: 08/14/2012)

I'm interested in applying to the 'corporate treasury' division at Goldman Sachs, and the equivalent divisions at other BBs (the ones that have such a division). I know about what the role involves but I'm not too sure about its 'rank' (FO, MO or BO?). I don't care much about the prestige but I just need an indication of the kind of salary this type of role offers? Also the typical hours? How competitive to get in?

There isn't much info on corporate treasury at GS on the web so any input would be much appreciated!

Feb 1, 2016 - 11:48am

This...This is actually a really good question. Hopefully someone here can provide insight. I also can't find anything on this.

Here to learn and hopefully pass on some knowledge as well. SB if I helped.
Feb 1, 2016 - 11:52am

If you regard Market/Credit risk as MO (which many people do on this forum), then Corporate Treasury at GS is very MO.
With regards to salary, a first year analyst's salary can range anywhere from 80k all in at a decent MM/BB FI in NYC to 105-110k all in at a very prestigious BB (think GS, MS, JPM).
Corporate Treasury is usually in the finance division; however, think of it as the nexus/top of the house that binds a FI together. As a result, exit ops are fairly good for a MO/BO position. In fact from my personal experience, ~50% of the people I've talked to in Corp Treasury have come from FO positions or moved back and forth between MO/FO/MO. Granted your exit ops will most likely be limited to DCM/liquidity products on the S&T side or CFA on the IB side, but it's still not bad.
Interviews are noticeably harder than finance/ops, but less quantitative/comprehensive then IB/S&T/Risk.

Feb 1, 2016 - 11:54am

Well, there are various aspects of treasury. There are the front office people that are managing the firms cash from their balance sheet. These folks are investing in short term securities; terming out repo, etc. Not a lot of risk taking here, however they're doing it with billions of doll hairs. Then you have the folks in MO type roles. They're providing reports and such on the risk, balance sheet things. Booking the trades, working with the settlements teams, and moving the cash are other parts of this.

Honestly, corp. treasury is one of the least stressful/cushy front office roles you can have. That being said, it's very competitive to get into these roles, as no one ever wants to leave. Some people will spend their entire career in this position at one firm. Also, I'm not sure what the exit opps entail for this.

I'm on the pursuit of happiness and I know everything that shine ain't always gonna be gold. I'll be fine once I get it
  • 5
Feb 1, 2016 - 11:59am

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?

Feb 1, 2016 - 12:00pm

From what I've seen, short term desks and collateral desks are the easiest to get into. I think you could go straight into a buy side short term desk straight out of grad school and be a PM. I've seen a few guys do that actually. That was post MBA and not MF though, but I still think it would be very possible and likely.

"It is hard to fail, but it is worse never to have tried to succeed." Theodore Roosevelt
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Feb 1, 2016 - 12:05pm

Quick bump to this thread. Does anyone here know how people join large bank treasuries? Working as a dealer on a treasury desk seems like a great way to gain exposure to macro-oriented trading and take on prop risk without getting "Volcker ruled." Banks don't advertise this kind of postition nearly as much as the regular IBD or S&T analyst positions so I was wondering whether anyone knew what the typical path is.

Feb 1, 2016 - 12:10pm

WTF is "Treasury Solutions" (Originally Posted: 12/02/2012)

I have been searching through the WSO a lot and this is what i can find for treasury

  1. Corporate Treasury - where F500 companies manage their cash, assets and liabilities under the CFO office

  2. Treasury Desk - normal trading desk in the dealing room where traders buy and sell US Treasuries & other govt. bonds

  3. Banks Own Treasury - banks have their own treasury department which manages the cash, assets and liabilities on the banks balance sheet. i think the london whale lost money on one of these prop desks at JPM

  4. Treasury Solutions - as part of the corporate banking program, the banks manage the treasury of the F500 companies or provide some services to the treasury/CFO office of these companies

i am assuming the BAML GTS group falls under the 4th category.
can somebody please confirm this and offer ANY background info on this group (what are their day-to-day tasks, is it a FO/BO position, what skills do they require, exit ops)

thanks!

josh


this is what the BAML website says...

GTS (Global Treasury Solutions) Sales provides our Corporate and Financial Institution client base with payment, receipt, liquidity and other working capital management solutions.

GTS brings a holistic suite of services to clients, backed by unmatched investment and commitment to delivery. Our products and services improve our clients cash management, including: bank accounts, money transfers and collection services, investment facilities, interest bearing account, money market deposits, financing facilities and deposit and withdrawal facilities


Feb 1, 2016 - 12:11pm

Treasury solutions AKA small hedge funds at JPM.

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
Feb 1, 2016 - 12:12pm

Uh, pretty sure thats just selling treasury services. No finance involved. You will just help pitch payroll services to the treasury departments of corporates. At my bank these guys are constantly brought in to cross-sell treasury management products to our usual clients.

I do not recommend it as a first job out of school if you want to be a finance guy. It may be good for you if you aspire to be a salesman.

Edit; other stuff they sell: payroll, lockboxes, escrow, shareowner services, transfer agency... think like any traditional commercial bank's fee for service

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Feb 1, 2016 - 12:15pm

Treasury, in house-trading?? (Originally Posted: 11/21/2013)

Hi guys, I was wondering if you need a S&T Background to work at treasury for somewhere like Google where they trade in-house? I'll be starting at a big 4 (audit) after this year and I am very interested in moving into this kind of job- long term.

Would I need a CFA?

Thanks for your help

Feb 1, 2016 - 12:16pm

I highly doubt a CFA would help.The internal treasury traders I know started where they are straight out of college, I'm afraid I don't totally know what to suggest to make the transition. Google's treasury might have some former S&Ters, but there are very few sophisticated treasuries outside of the tech and energy spaces.

Feb 1, 2016 - 12:19pm

Why do you like the treasury function? Less intensity than Wall St? Lack of outside clients? Get to work at cool place? If you're interested in "less stressful" trading/money management then there are options outside of big companies treasuries.

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Feb 1, 2016 - 12:25pm

Corporate Treasury - Senior at a non target (Originally Posted: 02/19/2013)

I'm a senior at a non-target and I have an on campus interview for a rotational program at a F500. One of the departments for the rotations is corporate treasury. I was curious what is exactly that the corporate treasury department is responsible for and would this be applicable to a move to the buy side down the road. I am just looking for some basic info hear so any contribution helps. Thanks.

Feb 1, 2016 - 12:28pm

Glad I could help, I remember there were a couple other threads I stumbled upon while interviewing for Corp Treasury also. I'm sure you could find it with a search or if you dig through a couple pages

Feb 1, 2016 - 12:32pm

Treasury Analyst - Any ideas on what kind of career path treasury offers? (Originally Posted: 09/05/2013)

Any ideas on what kind of career path treasury offers? Is it just constrained in the Corporate Treasury of a bank/ large corporation or can you transfer to Trading as well?

Feb 1, 2016 - 12:38pm

Treasury (Originally Posted: 12/21/2007)

Hi there,

  1. what is the general op about Treasury at BBs or at other F500 companies?
  2. what are the hours?
  3. what is the pay in the:
    1st year:
    2nd year:
    3rd year:
  4. How fierce is the competition?
  5. For how long ppl stay in treasury (I mean in the long run, when you are 40-50)?
  6. What are the chanes to a top MBA?
  7. Will an MS Finance help to get the job?
Feb 1, 2016 - 12:43pm

Bank Treasury (Originally Posted: 07/14/2011)

I was wondering if anybody here has worked in a bank's treasury department or knows someone who does. From what I can gather from the description of JP Morgan's Chief Investment Office or Bank of America's global funding desk, traders on these desks hedge the bank's fx and interest rate exposure and are usually encouraged to take on prop risk.

This sounds exactly like what I want to be doing and I wanted to know if anyone knew the process for joining these groups and whether you see anybody with this kind of background on the buyside, specifically at macro funds. I'm starting a two-year Msc. in Finance this Fall btw.

Thanks for the help.

Feb 1, 2016 - 12:46pm

Congrats on MsF acceptance, this sounds like a good place to start if global macro is your end goal.

looking for that pick-me-up to power through an all-nighter?
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