Market Update: Strategies for Volatile Markets Q4 2020
- December 8, 2020 at 2 p.m. EST
- 60 minutes
- 1.2 CTP Credits
1.2 CPE Credits
Our 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.
Certified Treasury Professional
Pending approval for recertification credits by the Association for Financial Professionals.
National Registry of CPE Sponsors
This group-internet-based course on specialized knowledge is at the basic level, with no prerequisites required and no advanced preparation required. For more information on our refund and complaint policies, or if you are planning to participate as a group, please contact us at +1 610 925 3120 or firstname.lastname@example.org. Chatham Financial is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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
Credit unions have experienced a significant increase in member deposits during the pandemic which has led to excess liquidity and low-yielding cash balances. Hedging tools may help these institutions extend asset duration and improve margins while also managing their incremental rate risk.
Chatham Financial announced today that it has structured and executed the first AMERIBOR-indexed interest rate swap in a designated hedging relationship on behalf of First Merchants Bank.
In a holiday-shortened week, the major U.S. equity indices moved higher with the Dow Jones Industrial Average surpassing the psychologically significant 30,000 level at one point amid a deluge of economic data releases, positive vaccine developments, and rising COVID-19 cases in the U.S.
The major U.S. equity indices ended the week mixed with the Dow Jones Industrial Average and the S&P 500 drifting lower and the Nasdaq inching higher amid mixed economic data, surging COVID-19 cases in the U.S., and encouraging vaccine developments from Pfizer and Moderna.
The major U.S. equity indices ended the week mixed with the Dow Jones Industrial Average and the S&P 500 moving higher and the Nasdaq heading lower amid rapidly rising COVID-19 cases in the U.S., mixed economic data updates, and encouraging COVID-19 vaccine developments.
The NCUA Board approved a proposed rule to modernize and simplify the agency’s derivatives rules. The proposed changes would make it easier for federal credit unions to use common hedging tools to manage their interest rate risk especially during these times of disruption and uncertainty.
Our friends from The Kafafian Group sat down with Matt Tevis and Kim Johnston from Chatham to discuss the transition away from LIBOR, various alternatives including SOFR, and how community banks can best prepare.
Challenged by having excess liquidity and fewer loan opportunities, financial institutions need to utilize all available tools to be competitive and determine how best to meet their customers’ needs while also managing their own rate risk in this historically low-rate environment.