VIDEO: Portfolio Reconciliation Requirements
Heather Fritzinger of Chatham Financial discusses the advantages of reconciling a portfolio of derivatives transactions with bank counterparties on a periodic basis. In addition, she explains which parties are required to reconcile trade portfolios under Dodd-Frank and EMIR, and describes how this reconciliation must be properly documented according to protocols published
Practical Guide to Asset Sensitivity
Banks use several techniques to convert some of their asset-sensitivity to current period earnings.
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Financial Institutions Case Study: Loan-level Hedging
A regional bank with an established hedging program.
The bank was looking to expand its loan-level program under the supervision of a former derivatives marketer and had faced challenges on the accounting for its balance sheet derivatives. The bank called Chatham on the advice of its
Financial Institutions Case Study: Accounting Needs
A regional bank with over $10 billion in assets that had an existing hedging program and a pressing accounting need.
The bank had executed balance sheet derivatives, but its auditors had expressed concerns about the hedge designation memorandums, encouraging the bank to contact Chatham as soon
Hedge Accounting for Financial Institutions
Financial institutions that use derivatives to manage risk or offer derivatives to their clients are mindful of the associated regulatory and financial reporting involved. They expect reported results to accurately reflect the underlying economics of derivative and hedging activities.
Effectively aligning the bank’s economics and reported results, while minimizing ineffectiveness
Lowering cost of funds with interest rate derivatives
When properly structured, from both an economic and hedge accounting perspective, interest rate derivatives are usually the best solution for banks concerned about forecasted interest rate movements that negatively impact their financial performance. Chatham offers outstanding derivatives and hedge accounting advisory and systems designed to reduce this