The implications of Basel III regulations on banks is widely debated, but what is less appreciated is the impact that Basel III is having on companies. In particular, new liquidity standards will change how certain deposits are valued by banks. Specifically, banks must now make assumptions about the stability, as well as acceptable liquidity sources and levels for each deposit type. These changes could impact the rate of return banks are able to offer on a company’s long-term investment cash.
Companies will therefore need to rethink how they invest surplus cash to obtain acceptable yields, while maintaining the liquidity and level of security they require. Additionally, companies must make sure their cash flow management and forecasting moves cash through the company efficiently and predictably in order to facilitate efficient use of surplus cash.
For these reasons corporate bankers are under increasing pressure to ensure that they can assess the impact of risk crystallisation events on their client company’s cash and working capital management and in particular their ability to honour their debt service from future net operating cash flows.
This highly applied and interactive two day course, aimed at corporate bankers, corporate relationship managers and credit risk analysts at lending institutions, provides a holistic approach to cash flow forecasting through the use of financial modelling and sensitivity analysis. Using cash flow forecasts and cash flow statements we will apply risk analysis to assess how companies can manage their cash flows and honour their debts in an increasing volatile business environment. We will also assess how using discounted cash flow forecasts can provide estimates of client companies’ enterprise values.
Participants will be required to bring a laptop with Excel to the course.
Exercise: examining sample cash flow statements
Exercise: constructing a simple cash flow statement from income statement and balance sheet
Exercise: contrasting cash flow with earnings using example
Exercise: analyzing sources and uses of funds for a corporate
Exercise: calculating cash flow based financial ratios
Exercise: completing cash flow forecast
Exercise: identifying cash flow problems and evaluating solutions
|Training Courses||Training Course Summary|
|Risk & Capital Management Under Basel III and IFRS 9||Understand the traditional as well as the ever changing landscape of Risk & Capital Management|
|Securitisation & Structured Products||Be introduced to structured products including static, revolving and managed transations, the role of a portfolio manager and the impact of the credit crisis|