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This module will look at the three core elements of capital markets and treasury management as follows: liquidity management and capital markets, financial management and risk management and treasury operations. Students will look at the key theories and elements underpinning each section. Students will initially examine the context for international cash and liquidity management such as financial and banking systems and the time value of money. They will then move on to discussing core concepts such as equity and debt and the methods available for raising finance in the capital markets. Throughout the next sections students will evaluate further methods of raising capital; analyse bond markets and credit ratings and look at the fundamentals of equity valuation. It will develop an understanding of risk management and the framework within which financial risks can be managed before closing with an in-depth analysis of the treasury function, its organisation, policies, objectives and controls.

Aims & Objectives

• Critically analyse the importance of cash and liquidity management in the context of banking operations.
• Critically assess the importance of capital markets and treasury management in a contemporary context.
• Critically evaluate alternative strategies and techniques applied in raising finance in the debt and equity markets.
• Critically evaluate methods of equity valuation and issues surrounding dividend policy.
• Critically evaluate the main roles and features of the treasury function and its relationship with other functions within banks.
• Critically evaluate the uses, merits and performance of credit ratings, and analyse the complexity of current issues surrounding credit ratings.
• Demonstrate the ability to make informed judgements in the use of money market and foreign exchange market instruments.
• Identify, evaluate and apply appropriate techniques and methods relating to bond pricing, bond yields and duration.
• Identify, evaluate and apply appropriate techniques and methods relating to interest rate and exchange rate risk management.

Learning Methods

Means of Assessment

This module is assessed by means of a single mini project of 3,500 words in length.

What will you study on this course?

Unit One covers:

This unit examines the context for liquidity management such as financial and banking systems and the time value of money. It introduces core tools used in treasury such as money markets and the foreign exchange market. The unit also examines core concepts of equity and debt and introduces methods of raising finance in the capital markets. Hence it also provides a foundation for material covered in Units 2 and 3.

Unit Two covers:

This unit provides detailed coverage of important aspects of the capital markets (debt/equity or bond/stock markets) and builds on the foundations of Unit 1. In the context of the bond markets, we pursue current topical areas (e.g. credit ratings, the European sovereign debt crisis) and much of this material is not available in textbooks. These topics reflect research expertise at Bangor Business School. In the context of the equity markets, we initially focus on equity valuation and the role of dividend policy. Finally, we address principles of risk, return, portfolio diversification and asset pricing models.

Unit Three covers:

This unit examines the concepts and tools of risk management and explores the motivations for hedging by banks. We proceed to discuss generic risk management techniques and the functions of derivative instruments. Commercial banks are faced with a long list of potential sources of risk and therefore many risks that need to be managed. In this unit, the focus is on the management of three types of risk, namely interest rate risk, foreign exchange risk and credit risk. In the final subsection, we aim to draw together several key issues within the syllabus which have relevance to a bank’s treasury functions and treasury management.

This module is offered as part of the syllabus on the Chartered Banker MBA (CBMBA) programme. Should you wish to advance to the CBMBA, successful completion of this module will provide an exemption to this module. 

The cost of this course is £1,700

Aimed at mid-career professionals working in the financial industry or regulation. Entry consideration will be given to individuals with minimal experience or qualifications.

English Language Requirements

Applicants must have a high level of fluency in the English language. The English language tests we normally refer to are as follows;

• IELTS: 6.0 (with no element below 5.5)
• Pearson PTE: a score of 56 (with no element lower than 51)
• Cambridge English Test – Advanced: 169 (with no element lower than 162)

How to Apply

Please make sure you read and follow the step-by-step application guide as this will specify which sections of the application form are compulsory for the type of course you want to apply for and save you time.

Please prepare the following information (in a Word document):

• Current employment details;
• Years of experience, and employment history (where relevant)
• Name of staff member and organisation that have approved your funding for this module.

This will speed up the process of completing the application form.