CU2313. Hedging Strategies for a Challenging Environment
Regulatory and accounting rule changes have made it easier than ever for institutions of all sizes to implement hedging strategies, and for many, the environment is right to do so. In this session, we will explore how to set policies and procedures in place to be able to use derivatives, then look to real world examples of how institutions have recently been using hedging strategies to reduce interest rate risk, lower cost of funds, and achieve broader strategic objectives.
- Compare lessons for achieving board support of a hedging program through key messaging and education, critical foundations of policy development, and internal team setup to handle processes of the hedging platform.
- Select several important strategies for hedging both net interest income and net economic value variability across a range of scenarios, with practical considerations for the hedge relationships constructed to house those derivative strategies.