Treasury Management. Hedging Mechanics, Treasury Governance and Decision Frameworks (en Inglés) - Rania Itani;Alessio Faccia

Treasury Management offers a technical and practice-led study of how firms manage liquidity, funding, hedging, market exposure, and financial control. Focus stays on what treasury teams must do when value dates matter, when refinancing windows narrow, when rates and currencies move against budget assumptions, and when derivative structures alter both risk and liquidity at the same time.

Coverage starts with the treasury mandate and its link with the balance sheet. Readers move from market structure into valuation logic, then into the mechanics of forwards, futures, options, swaps, swaptions, and cross-currency structures. Attention stays on economic use, pricing logic, risk transfer, and control. Rather than treating treasury as a narrow cash office, the book frames it as the discipline through which firms defend liquidity, shape funding profiles, control market risk, and preserve decision time under pressure.

Core chapters examine money markets, capital markets, price formation, benchmark rates, yield curves, discount factors, and forward pricing. Fixed-income valuation, duration, convexity, spread analysis, covered interest parity, cross-currency basis, and replication logic are explained in a way suited to both advanced students and finance professionals. Derivative use is treated with care. Forward contracts, futures, margining, daily mark-to-market, option sensitivities, volatility surfaces, swaps, FRAs, swaptions, foreign exchange hedging, and commodity risk transfer are all discussed through their treasury function rather than through abstract theory alone.

A large part of the book is dedicated to hedge design and exposure control. Readers are shown how to identify and measure interest rate exposure, foreign exchange exposure, commodity exposure, and refinancing exposure. Discussion then moves into hedge ratios, tenor matching, basis risk, static hedging, dynamic hedging, delta rebalancing, rollover strategy, hedge effectiveness review, profit and loss attribution, and sensitivity analysis. Strong attention is given to the reality that a hedge does not remove risk in full. A hedge changes the form of risk. Sound treasury judgement lies in knowing what remains after execution.

Liquidity and funding discipline receive detailed treatment. Liquidity buffers, cash flow forecasting, stress testing, funding pressure, maturity concentration, and contingency funding plans are examined as one connected framework. Focus remains on deployable liquidity rather than headline balances, and on funding resilience rather than headline coupon cost. Counterparty credit risk is also covered in depth through current exposure, potential future exposure, netting sets, default probability, recovery assumptions, collateral terms, margin disputes, close-out value, and crisis protocols.

The final part of the book addresses governance, conduct, documentation, and reporting. ISDA architecture, netting clauses, credit support annexes, confirmation standards, treasury controls, valuation memoranda, hedge papers, and technical reporting standards are treated as financial disciplines, not administrative afterthoughts. Ethical dealing, conduct risk, and reputation capital are presented as core elements of treasury quality because weak behaviour often damages funding access, internal trust, and external confidence long before formal loss appears.

Treasury Management is written for finance professionals, postgraduate and advanced undergraduate students, corporate treasurers, controllers, risk managers, auditors, and advisers who need a serious treatment of treasury as a balance-sheet control function. Readers looking for practical guidance on liquidity management, hedging mechanics, treasury governance, derivative use, refinancing risk, and financial decision frameworks will find a structured and technically rigorous reference built for current corporate finance practice.