Derivatives Boot Camp

Transcription

1 OCTOBER 25-26, 2016 Derivatives Boot Camp Orlando, FL Hyatt Regency Grand Cypress

2 Derivatives Boot Camp While the past several years of historically low interest rates have greatly benefitted the bottom lines of many financial institutions, economic data and comments from federal officials indicate that short-term rates are poised to rise in the near future. Uncertainty surrounding the timing and magnitude of rate increases is already contributing to market volatility, as institutions of all sizes begin to prepare for the inevitable challenges associated with rising funding costs. If your institution has not considered hedging with swaps or caps, now may be the time to explore the risks and rewards of adding derivatives to your risk management tool-kit. Gain the fundamental tools for understanding how swaps and caps work with our upcoming seminar, Derivatives Boot Camp. Industry experts Bob Newman and Regan Campbell, of Chatham Financial, will provide a high level introduction to the most popular interest rate derivative tools used by financial institutions interest rate swaps and interest rate caps, de-mystifying what is often thought to be a complicated topic. They will cover how these instruments are designed, how they are priced, and the economic benefits that they can be expected to deliver as market interest rates change. You will walk-away from this session with a thorough understanding of the mechanics of interest rate swaps and caps and the market expectations for shortterm interest rates, in addition to: How market expectations for short-term interest rates impact the price of interest rate swaps and caps How to perform an apples-to-apples comparison of a swap and cap utilizing a break-even future path of short-term interest rates How designating a swap or cap as an accounting hedge impacts expense recognition for hedging costs How to apply hedge accounting to minimize mark-to-market volatility in the P&L How to utilize Chatham s POLAR (Path of Least Accounting Resistance) method to identify the interest rate exposures that are candidates for hedging How a back-to-back borrower-facing swap program can benefit both clients and the institution About FMS For nearly 70 years, the Financial Managers Society s network of members has provided technical education to financial professionals from community financial institutions through conferences, seminars, webinars and publications. For details on FMS membership benefits or how to become a member, please visit or call 800-ASK-4FMS ( ).

3 Agenda Tuesday, October 25, :00 am Registration and Continental Breakfast 8:30 am to 4:30 pm History and Background of the OTC Derivatives Market LIBOR and the Eurodollar Futures Market Mechanics of Interest Rate Swaps Wednesday, October 26, :00 am Continental Breakfast 8:30 am to 12:00 pm Review Key Concepts Work Groups Complete Case Study Re-group to Discuss Case Study Results Mechanics of Interest Rate Options Caps Floors Swaptions Concept of Mark-to-Market Valuation Overview of Accounting for Derivatives Hedging Strategies for Liability- Sensitive Financial Institutions Pay-fixed swaps Bought caps Borrower back-to-back swaps Hedging Strategies for Asset-Sensitive Financial Institutions Receive-fixed swaps Bought floors Loan-level Hedging Programs Mechanics of a back-to-back swap program o How fee income can be generated o How interest rate risk is mitigated o Bringing a consultative mindset to the commercial lending process o How swap solution benefits the commercial borrower Introduction and Discussion of Case Study Wrap-Up

4 Faculty Bob Newman, Managing Director, Chatham Financial Bob Newman is the Managing Director for Chatham s financial institutions business which specializes in interest rate risk management, hedge accounting, and investment advisory for banks. He is also a member of the firm s Operating Committee. Prior to joining Chatham in 2003, Bob spent 20 years in commercial banking, helping to start the derivatives operation at Maryland National Bank and expand the derivatives effort at SunTrust. He graduated from the College of William and Mary with a BA in Economics and has earned the Chartered Financial Analyst (CFA) designation. Regan Campbell, Director, Chatham Financial Regan is a member of Chatham Financial s Hedge Advisory team focusing on Financial Institutions. He is a Client Relationship Manager who consults with and is responsible for the deployment of Chatham s services to numerous Financial Institutions across the country. Prior to joining Chatham, Regan spent eight years in the US Army as an Engineer Officer. His last assignment was commander of a combat engineer company in Iraq where he was awarded a Purple Heart. Regan graduated from the United States Military Academy with a BS in Aerospace Engineering and holds an MS in Engineering Management from the University of Missouri-Rolla. Details Location and Accommodations Hyatt Regency Grand Cypress 1 Grand Cypress Blvd. Orlando, FL Special FMS Room Rate: $209 Single/Double Deadline for Rate: October 3, 2016 For Reservations Call: Identify yourself as an attendee of the Financial Managers Society program to receive the preferred rate. If you are making reservations through a travel agent, be sure to request that your reservation be placed in the FMS room block to guarantee the best rate. Tax-Deductible Programs An income-tax deduction may be allowed for educational expenses (including registration, travel, meals and lodging) undertaken to maintain or improve professional skills. (Treas. Reg. Sec ) CPE Credit Earn up to 12.5 hours of CPE credit Level: Intermediate Prerequisites: None Advance preparation: None Field of Study: Management (Finance) Instructional Method: Live-Group 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 Web: For more information regarding administrative policies such as concerns or refunds, call 800-ASK-4FMS ( ).

5 Registration 3 WAYS TO REGISTER QUESTIONS? Call 800-ASK-4FMS ( ) Mail: Financial Managers Society 1 North LaSalle Street, Suite 3100 Chicago, IL Fax: Internet: NAME TITLE ORGANIZATION MAILING ADDRESS CITY, STATE, ZIP ASSET SIZE PHONE REGISTER Please select from one of the following options. Call for details about team discounts. Derivatives Boot Camp October 25-26, 2016 Orlando, FL FMS Member: $975 $ Coworker of Member: $1,075 $ Nonmember: $1,375 $ Please list any special accommodations (including dietary restrictions) you require. Not an FMS member? Join now and save on registration! FMS Regular Membership: $475 $ FMS Affiliate Membership: $495 $ Join FMS today at and not only will you save $300 on the registration fees but you can also take advantage of the year-round FMS member benefits. TOTAL $ METHOD OF PAYMENT Payment must accompany registration. o Check enclosed payable to Financial Managers Society o Charge my MasterCard, Visa or American Express Card # Exp. Date Signature Refunds and Cancellations A refund minus a $150 processing fee will be provided for cancellations received by FMS in writing by October 3, No refunds will be given for cancellations received after that date. A substitution from your institution is welcome at any time. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties incurred due to the cancellation of the program. For more information regarding refunds, concerns and/or program cancellation policies, please contact our offices at (312)

6 1 North LaSalle Street, Suite 3100 Chicago, IL ASK-4FMS ( ) Derivatives Boot Camp October 25-26, 2016 Orlando, FL Presorted Standard U.S. Postage PAID Wheeling, IL Permit No. 38