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
Offer borrowers a fixed rate without taking on the interest rate risk
Many banks find it challenging to meet their commercial borrowers’ demands for long-dated, fixed-rate loans without violating their own lending policies. Yet they risk losing these clients to larger financial institutions that offer synthetically fixed-rate loans comprised of a floating rate loan and…
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