Astleigh's Consulting Services > Astleigh's Alert Services > Treasury and Credit Education

Treasury Credit Policy Reviews

Utilising Credit Ratings are an efficient way to measure counterparty risk. However when looking at overall treasury management policies this is just the start- You also need to consider

1. What is your cash flow profile?
2. What Risks you wish to work within?

• Country Risks
• Corporate Governance
• Market liquidity
• Market volatility
• Interest rate risk
• Currency risk
• Duration/Term

3. How do you choose counterparties?

• Basis of selection/analysis
• Risk tolerance/limits/concentration

4. What debt instrument do you buy?

• Asset type
• Asset liquidity
• Asset volatility

Not understanding any ONE could leave you exposed.

Astleigh can “health check” your current treasury management policies to help identify gaps and improve processes.

Credit Education

Astleigh recognises counterparty credit risk and treasury policy management are very complex matters. Senior staff in the finance department will undoubtedly have a good grasp of the issues. Lay Trustees/Governors with ultimate responsibility and more junior finance team members who execute the policy may not be as familiar with the financial markets.

As an additional service for those clients subscribing to the Astleigh Alert Service, or requesting a Treasury Credit Policy Review, Astleigh can tailor presentations to help communication with Boards or Governors and or train finance team members. By their nature these assignments will be specific to each institution.