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Balance Sheet Hedging
Guide

Optimizing and protecting your financial institution’s balance sheet

As a completely independent firm, Chatham partners with clients to implement integrated solutions, tailoring our focus on advisory and technology in order to meet the needs and goals of your financial institution now and into the future.

Strategy development and execution

A collaborative effort with our capital markets team to satisfy your institution’s risk policies and ALM objectives.

  • Customized to your financial institution's interest rate risk position
  • Objective decision-making tools
  • Leverage the execution expertise of a team that trades $3B daily

Hedge accounting advisory

Chatham’s hedge accounting experts manage all aspects of accounting for each hedge transaction.

  • Ensuring accounting-friendly hedging relationships
  • Drafting hedge documentation
  • Measuring hedge effectiveness
  • Providing periodic journal entries, valuations, call report data, and SEC disclosures

Integrated technology

Enterprise-class software built to meet the needs of the most sophisticated financial institution.

  • Living-pricing and analysis
  • Pre- and post-trade hedge accounting review
  • Portfolio servicing
  • Risk management tools

Why work with Chatham

Chatham Financial is the largest, independent financial risk management advisory and technology firm.

  • Established in 1991 and 100% employee-owned
  • A trusted partner built on independence and objectivity
  • Not a broker-dealer and not beholden to any dealer
  • 100% transparency in pricing

Why do financial institutions use derivatives?

A competitive Asset Liability Management (ALM) tool

Client requests, investment decisions, and funding choices can all be optimized rather than driven by their associated interest rate risk profile.


Are you ready to learn more?

Get in contact with a Chatham advisor today.


Disclaimers

Chatham Hedging Advisors, LLC (CHA) is a subsidiary of Chatham Financial Corp. and provides hedge advisory, accounting and execution services related to swap transactions in the United States. CHA is registered with the Commodity Futures Trading Commission (CFTC) as a commodity trading advisor and is a member of the National Futures Association (NFA); however, neither the CFTC nor the NFA have passed upon the merits of participating in any advisory services offered by CHA. For further information, please visit chathamfinancial.com/legal-notices.

Transactions in over-the-counter derivatives (or “swaps”) have significant risks, including, but not limited to, substantial risk of loss. You should consult your own business, legal, tax and accounting advisers with respect to proposed swap transaction and you should refrain from entering into any swap transaction unless you have fully understood the terms and risks of the transaction, including the extent of your potential risk of loss. This material has been prepared by a sales or trading employee or agent of Chatham Hedging Advisors and could be deemed a solicitation for entering into a derivatives transaction. This material is not a research report prepared by Chatham Hedging Advisors. If you are not an experienced user of the derivatives markets, capable of making independent trading decisions, then you should not rely solely on this communication in making trading decisions. All rights reserved.

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