Market Update: Strategies for Volatile Markets Q4 2020
- December 8, 2020 at 2 p.m. EST
- 60 minutes
- On Demand
SummaryOur experts examine the factors driving the markets and discuss the balance sheet risk management strategies being implemented by financial institutions. We will share perspective on the interest rate risk management concerns by reviewing the challenges and opportunities in today’s volatile market.
- Discuss how recent capital markets developments have impacted derivative markets
- Review hedging strategies financial institutions have been implementing in the context of the current market
- Learn the latest updates on the market’s transition away from LIBOR
- Learn about temporary accounting relief on certain hedging strategies and interactions with reference rate reform guidance
About the speakers
Balance Sheet Risk Management
Financial Institutions | Kennett Square, PATodd Cuppia is a Managing Director and leads Chatham Financial's Balance Sheet Risk Management practice. Todd works with financial institution clients on developing and executing strategies to manage complex economic risks.
Financial Institutions | Kennett Square, PAEri Panoti leads the Financial Institutions Hedge Accounting practice and advises clients on hedge accounting policy and application for both balance sheet risk management strategies as well as customer hedging needs.
Balance Sheet Risk Management
Financial Institutions | Kennett Square, PAGreg Martell is a Director on Chatham’s Financial Institutions business and serves on the Balance Sheet Risk Management practice where he advises clients on developing balance sheet solutions to manage their interest rate risk.
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.20-0447
Our featured insights
House passes $1.9 trillion relief package
Despite strong U.S. economic data, positive COVID-19 vaccine developments, and dovish comments from Fed Chair Powell, the major U.S. equity indices moved lower for the week as mid and long-term treasury yields continued their march higher and inflation fears reignited.
Installing an interest rate swap program at a community bank
Bob Newman interviews Kish Bank CFO Mark Cvrkel who shares how embracing and installing derivative capabilities at a $1 billion bank was simpler than expected. The conversation uncovers three benefits that favor the use of traditional swaps over...
Treasury yields march higher
The major U.S. equity indices ended the week mixed with treasury yields moving notably higher amid strong U.S. economic data, dovish comments from the FOMC, and stimulus bill progress.
President Biden speaks with President Xi; Inflation remains muted
The major U.S. equity indices touched new highs last week as stimulus bill optimism, sustained decline in COVID-19 cases, sustained increase in COVID-19 vaccinations, and dovish comments from the Federal Reserve Chair buoyed investor sentiment and...
Stimulus bill optimism drives equities higher
After suffering the worst week since October, the major U.S. equity indices regained their footing last week as renewed stimulus bill hope, sustained decline in COVID-19 case counts, and increased levels of vaccinations in the U.S. buoyed investor...
Evaluate swap strategies to manage your interest rate risk
In this short video Ben Lewis discusses how derivatives help banks remain competitive in an increasingly unpredictable market by introducing the difference between traditional and indirect interest rate swaps.
Increasing margin while protecting against adverse rising rate scenarios
Chatham strategized and worked with a financial institution client who purchased a fixed-rate security and layered on a pay-fixed, receive-floating interest rate swap.
Could a resurgence of inflation be around the corner?
After years of stubbornly low inflation, markets and economists expect prices to remain stable for the foreseeable future. But there are warning signals from various parts of the global economy that suggest a resurgence of inflation is more likely...