|Event Date||Tue Aug 6 EDT - Wed Aug 7 EDT (about 2 years ago)|
Late in the economic cycle, we are seeing more banks take a proactive approach to protect against falling rates. At the same time, an inverted swap curve creates tactical opportunities for liability-sensitive banks struggling with rising cost of funds. Meanwhile, the Financial Accounting Standards Board expanded the hedging tools available to bank management teams when they published ASU 2017-12 in August 2017.
Actionable new ideas, focusing on off-balance sheet hedging, will provide examples of how banks are approaching their latest challenges.
Key Takeaways—After attending this virtual education, you will:
• Understand the basics of swaps, caps, floors, and swaptions
• Know your options for wholesale funding strategies
• Explore advanced hedging applications through case studies
• Evaluate how hedging strategies can interplay with interest rate risk and ALCO objectives
Strategic Options Discussed—Hedging with New Accounting Rules, including:
• Designing hedge-friendly deposit products
• Using new accounting rules to expand the hedging toolkit
• Managing asset duration with swaps
• Using collars and floors for down-rate protection
Principal and Chief Balance Sheet Strategist, Sandler O’Neill + Partners, L.P.