This course covers one of the readings in the FRMPart IIsyllabus, "Liquidity Risk". This reading is under the section:"Liquidity and Treasury Risk Measurement and Management", which carries a weight of 15% in the FRMPart IIExam.

At the end of this course, you will be able to:

• Explain and calculate liquidity trading risk via cost of liquidation and liquidity-adjusted VaR (LVaR).

• Identify liquidity funding risk, funding sources and lessons learned from real cases: Northern Rock, Ashanti Goldfields and Metallgesellschaft.

• Evaluate Basel III liquidity risk ratios and BIS principles for sound liquidity risk management.

• Explain liquidity black holes and identify the causes of positive feedback trading.

• Explain the effects of leveraging and deleveraging, irrational exuberance

• Explain the impact of regulation and the importance of diversity

The instructor covers the syllabus in detail and where applicable, will illustrate how the calculations are done using the formula or in Excel spreadsheet.

In this course, you will have Course notes (in PDF form), spreadsheets, and course videos.

Comments on the Course So Far:

"Really well delivered"

"briefly touch all aspects of liquidity risk."

"good and relevant content"

"Precise and concise explanations and no beating round the bush. Good one for revising concepts or for getting through the syllabus when you have less time."

"Very clear step by step process, once applying it in real example would make sense"

"it was presented in a good and easy way"