Deep Dive into Derivatives
Late in the economic cycle, we are seeing more banks take a proactive approach to protect against falling rates. At the same time, an inverted swap curve creates tactical opportunities for liability-sensitive banks struggling with rising cost of funds. Meanwhile, the Financial Accounting Standards Board expanded the hedging tools available to bank management teams when they published ASU 2017-12 in August 2017.
Please join Sandler O’Neill’s Balance Sheet Strategy Team, led by Scott Hildenbrand, as they discuss the world of off-balance sheet hedging options. The session will begin with a derivatives boot camp: basic building blocks, an exploration of historical use of derivatives by community banks, hedge accounting basics, and how institutions choose among the options available to them. Building on that foundation, the team will discuss changing market dynamics and updates in hedge accounting rules. Actionable new ideas, focusing on off-balance sheet hedging, will provide examples of how banks are approaching their latest challenges.
Key Takeaways—After attending this virtual education, you will:
- Understand the basics of swaps, caps, floors, and swaptions
- Know your options for wholesale funding strategies
- Explore advanced hedging applications through case studies
- Evaluate how hedging strategies can interplay with interest rate risk and ALCO objectives
Strategic Options Discussed—Hedging with New Accounting Rules, including:
- Designing hedge-friendly deposit products
- Using new accounting rules to expand the hedging toolkit
- Managing asset duration with swaps
- Using collars and floors for down-rate protection
Principal and Chief Balance Sheet Strategist, Sandler O’Neill + Partners, L.P.
Scott Hildenbrand is a Principal and Chief Balance Sheet Strategist of Sandler O’Neill + Partners, L.P. He heads the Balance Sheet Analysis and Strategy group, which works with financial institutions on interest rate risk management, investment portfolio strategy, retail and wholesale funding management, derivative strategy, capital planning, budgeting, and stress testing.
Mr. Hildenbrand is a frequent financial industry commentator and has been featured in The Wall Street Journal, Bank Director Magazine and S&P Global Market Intelligence. He regularly speaks on issues related to balance sheet management at industry conferences and community banker forums throughout the country.
Mr. Hildenbrand holds a M.B.A in Finance from Loyola College in Maryland and a Bachelors degree from Gettysburg College. He serves as Treasurer on the Board of Directors for Liam’s Room, a not-for-profit organization that focuses on medical care for children with serious illnesses.
Registration to the live session includes:
- One online connection
- CPE credit for registrant
- Permission to reproduce the handouts and other written material for additional attendees at your location
Only registered attendees of the live session can obtain CPE credit. Attendees of FMS live webinars also receive two views of the On-Demand version of the program they attend. Use this bonus feature to share the program with colleagues or as a refresher at a later date. Instructions for viewing the on-demand session will be emailed to you at the conclusion of the live event.
|| Earn up to 5 hours of CPE credit.
- Level: Basic
- Prerequisites: None
- Advance preparation: None
- Field of Study: Accounting
- Instructional Method: Group Internet Based
- Length: 240 minutes
For more information regarding administrative policies such as concerns or refunds, call 800-ASK-4FMS (800-275-4367). FMS is registered with the National Association of State Boards of Accountancy 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. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.
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