Description:

Do you look at the interest rate swap curve before (or at least during) your first cup of coffee each day? If not you should.

Whether you know it or not, the interest rate swaps market plays an integral role in the everyday workings of balance sheet management and profitability. Becoming familiar with its nuances can mean the difference between consistent, healthy margins, and daily heartburn.

The class will explore the interest rate swaps and options market from a very basic and applied management perspective. A broader look at the relationship between Libor and swaps will quickly translate into a discussion on the “tools of the trade”. We will then look at how these tools can and should be utilized to properly price various assets and liabilities to meet management’s objectives and expectations.

From locking in a maximum rate paid on capital and funding structures, to effective pricing of fixed rate loans, the proper application of these interest rate management tools will allow you to tailor interest rate characteristics throughout the balance sheet that will minimize your interest rate risk and maximize interest margins.

Target Audience: 

Senior level managers with A/L management background, ALCO committee members, senior level lenders