HEDGING DIAGNOSTIC TOOLKIT

Informed hedging decisions start here

With Hedging Diagnostics, Financial Institutions will gain additional insights into lending decisions to estimate the economic value of a lending opportunity by demonstrating equivalent floating rate loan economics based on today’s swap curve. Additionally Financial Institutions will receive conceptual and practical approaches to implementing hedging programs.


Hedging Diagnostics Toolkit contains

Chatham’s risk management consultants work with clients to develop and execute accounting-friendly hedging strategies that best meet the bank’s ALM objectives. We leverage our strong capital markets presence, Dodd-Frank regulatory experience, proprietary analytical models, and hedge accounting and valuation technology platform on your behalf to structure the best possible derivative terms and price.
    MATCh – (Market Assessment Tool from Chatham)

  • Real-time, web-based tool that helps you make informed decisions about lending decisions and gain quantitative insight into specific hedging opportunities
  • MATCh enable users to:
    • View market swap rates for fixed rate loan pricing
    • Access historical data to gain understanding of current position in the rate cycle
    • Generate and export payment schedules across a variety of amortization structures
    • Provide interest rate risk transparency via financial market perspective
    • Monitor, track, update saved opportunities


    Draft Hedge Policy

  • Well-formed draft hedging policy
  • Understand the steps involved in putting the policy into action
    Hedging Education

  • Understand ways to contemplate interest rate risk given your FI’s funding, investing and lending practices
  • Gain an understanding of swap curve pricing discipline for long-term lending decisions
  • Evaluate business strategies and the applicability of different hedging strategies
    Hedging Roadmap

  • Identify hedging strategy(ies) that are most appropriate for your Financial Institution and how they can be deployed