Understanding the Fixed Income Portfolio Considerations for Community Banks
Fixed income markets have seen a thirty year bull market beginning with Volcker"s annihilation of inflation in the early 1980s. Now we face at best a flat, low interest rate scenario, and at worst a bear market that will erode the value of community banks" investment portfolios. Hoarding cash until interest rates increase erodes current income. However, bonds with noticeable yields will lose value the most as interest rates increase. This session by expert speaker Tally Ferguson CFA explores the current vs. future income trade-off and offers tools to help Treasurer evaluate recommendations made by their bond and investment advisors.
Examples of topics that will be examined during this audio conference include the following:
Review the yield curve - what informs the shape of the yield curve and how does the market compensate investors for "going further out" on the yield curve?
Understand fixed income bond valuation - what drives value? How does the yield curve inform bond value? What measures bond risk and what affects this measure?
Learn about "bond yield"-what is it and what determines the yield?
Explore risk trade-offs -- what are the trade-offs between credit, liquidity and interest rate risks, and how can we measure these trade-offs?
You will get:
Quick-reference check-list to run against bond swap recommendations
Tips for understanding bond valuation techniques
Excel based bond stress test formulae
Interest rate theory
Practical Bond Valuation techniques
Interest, liquidity and Credit risk trade-off surprises
Guidelines for improving your relationship with your bond financial advisors
Who Should Attend
Small bank Treasurers and CFOs
Market risk managers
Bond and financial advisors to community banks
Ask a question at the Q&A session following the live event and get advice unique to your situation, directly from our expert speaker.
Tally Ferguson CFA brings unique blend of regulatory compliance and quantitative risk management skills with nearly 30 years experience as a bank regulator, regulatory consultant and risk manager. He is currently the Director of Risk Management at BOK Financial, responsible for risk monitoring...
Disclaimer: The content herein does not represent any association between CFPB and Eli Financial LLC. CFPB neither endorses any product of Eli Financial LLC nor warrants accuracy of the content hereto.