TREASURY REPORT

Based on the analysis(please read the attached file) that i have done, you are suppose to come up with strategies such that it allows your bank to make a profit over the next 6 months with a capital of 1 million SGD to begin with.YOU MUST BE ABLE TO EXPLAIN AND JUSTIFY YOUR STRATEGIES SO AS TO CONVINCE YOUR SENIOR MANAGER THAT THEY WILL BE PROFITABLE FOR THE BANK.(WORD COUNT 1200 & HARVARD REFERENCING)

P.S, I HAVE ALSO ATTACHED TIPS FOR THIS REPORT THAT CAN AID U IN WRITING THIS HOMEWORK.

 

GUIDELINES

 

1ST STEP: CHOOSE 2 INSTRUMENTS FROM THE LIST OF CASH PRODUCTS(PRICE MAKING ACTIVITY) AND 2 INSTRUMENTS FROM THE LIST OF DISCOUNT SECURITIES(SPECULATION ACTIVITIES)
CASH PRODUCTS : OVERNIGHT CASH,7-DAY CASH,OVERDRAFTS,FIXED TERM DEPOSITS,FIXED TERM LOANS (choose any 2)

DISCOUNT SECURITIES : COMMERCIAL BILLS,PROMISSORY NOTES,TREASURY NOTES,CERTIFICATE OF DEPOSIT,REPURCHASE AGREEMENTS(REPO) (choose any 2)

 

2ND STEP: DETERMINE WHAT WILL BE THE SPREAD AND HOW U WILL MANAGE YOUR INTEREST RATE MARGIN SUCH THAT IT WILL ALLOW YOU TO MAKE A PROFIT OVER THE NEXT 6 MONTHS FOR EACH OF THE INSRUMENTS.(HOWEVER THIS SPREAD AND INTEREST RATE MUST NOT BE AN EXAGGERATED ONE,REFERENCE IT WITH OTHER LOCAL BANKS IN SINGAPORE TO COME UP WITH A REASONABLE YET PROFITABLE SPREAD) 

 

3RD STEP: PROVIDE THE QUANTITATIVE FIGURES BY USING FORMULAS FOR EACH OF THE INSTRUMENTS THAT U HAVE CHOSEN FROM THE LIST TO CALCULATE THE AMOUNT OF PROFIT THAT U WILL BE EXPECTED TO MAKE OVER THE NEXT 6 MONTHS.

 

4TH STEP. PROVIDE AN OUTLINE AND EXPLANATION OF THE RISKS AND OBSTACLES YOU ARE LIKELY TO ENCOUNTER IN IMPEMENTING YOUR STRATEGIES.