Financial Institutions Case Study: Loan-level Hedging Our Client: A regional bank with an established hedging program. Situation: 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 employee, who had prior interactions with Chatham in his former role as a counterparty to other Chatham clients. Summary: Chatham Financial assisted the bank by loading all of its existing trades into our proprietary system, including the balance sheet derivatives that needed accounting re-designations. Chatham reviewed the confirmations on all of the trades, along with the ISDA agreements with existing counterparties, to ensure appropriate terms and counterparty diversification. Chatham hosted management at Chatham’s campus to educate top officials on our turn-key approach to loan-level hedging,…

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