BANCU2407. Derivatives and Hedging Strategies

With a pivot in Fed policy after the preceding two years of monetary tightening, interest rate risk management continues to be paramount. Also, following key Accounting Standard Updates from FASB and relaxation of the regulatory code by certain agencies, derivatives have become even easier to use and more prevalent within the peer universe in the industry. In this session, we will establish foundational concepts on hedging such as relevant hedge accounting considerations, regulatory interaction and expectations, and board involvement/responsibilities. We will then highlight relevant hedging strategies specific to key interest rate risk profiles, and explore their application in detail.

Learning Objectives:

• Identify the basic hedging structures utilized within the industry.
• Identify key strategies and hedge accounting considerations for application of instruments used within the industry.
• Analyze key internal processes related to board and policy development regarding derivatives.
• Analyze other platform set up considerations to develop a robust derivative infrastructure.