Cash Balances + Asset Sensitivity: Navigating the Abundance of Liquidity and the Impacts of Increased Dependence on Bank Bond Portfolios 2022 | Financial Managers Society (FMS) | 28 April 2022 | Webinar
Venue
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| Event Date | Thu Apr 28 EDT (over 2 years ago) |
| Location | Webinar |
| Region | Americas |
Details
Strategy stress and forecasting is running rampant in the financial industry as we navigate the lingering effects of Pandemic dynamics in the depository space. Bank balance sheets are still flush with liquidity. The lack of loan demand and earnings pressure are resulting in significant increases in bank bond portfolios. From an Asset/Liability perspective, these significant cash balances are now accounting for a large amount of asset sensitivity across the board. What is going to happen to liquidity levels? How are deposit betas expected to perform?
What is the potential damage of a perfect storm for those who are asset sensitive? For those continuing to put cash to work in fixed income securities, where is there relative value? How do increases in bond portfolios impact Tangible Common Equity (TCE), and what can be done to protect it going forward? This webinar explores in more detail industry data from previous tightening cycles up to today, and various strategies that can be implemented to improve earnings and protect capital in this challenging environment.
Learning Objectives:
• How to use your asset liability management (ALM) model to:
• Evaluate the range of outcomes from both rate shocks and spread changes
• Consider the evolution of your balance sheet composition and resulting NIM impact
• Stress test the impact to capital and unrealized losses in the investment portfolio
• Evaluate the potential impact of trends and industry impacts
• Look beyond your traditional assumptions and scenarios
Key Take-Away:
• Financial managers will gain knowledge on how to:
• Quantify the range of impacts from changes in spreads and rates
• Objectively consider the options available for balance sheet management
• Build confidence throughout the ALCO process by entertaining the unknown
Audience:
• CEOs
• COOs
• CFOs
• CMOs
• Board of Directors
• Mid-Level Leaders
• ALM Analysts
Speakers
2022 Speakers
PRESENTERS
Phillip Reschke
Associate Director, Customer Service Mangement, Moody’s Analytics
David Kantor
Managing Director, Financial Institutions Strategy, Fixed Income Strategies Group Stifel