hedging

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Case Studies
Jun 22, 2022
Facing several challenges including losing deals to the competition that could offer longer-term rates, the bank needed a new lending strategy. Learn how they overcame and increased lending deals by 75%.
Webinars
Apr 26, 2017
As we continue into a rising rate environment, your bank's net interest margin (NIM) may contract as liability costs increase. PCBB's Funding Hedge Program can help mitigate the impact of rising rates and stabilize liability costs for up to 10 years by hedging your NIM--all without complicated derivative accounting or hedge effectiveness testing.
Feb 13, 2020
In this webinar, we look at the benefits of generating upfront fee income through hedging and discuss how most loans, including those already on your books qualify.
Feb 27, 2019
In this webinar, hosted by the Western Bankers Association, learn why LIBOR is being replaced, the impact of the replacement, and transition implementation tips.
BID Newsletters
Oct 13, 2022
Financial institutions are turning to interest rate swaps and other derivatives to hedge against rising interest rates and to offer customers greater flexibility when structuring loans. As customers try to fix borrowing costs amid rising interest rates, swaps are something your CFI might want to consider.
Jul 28, 2022
This past spring, the US bond market flashed a key recession warning with the yield curve briefly inverted and short-term debt paying more than longer-term loans. No one can know for sure when the next economic recession will begin, but CFIs may be able to take advantage of two potential opportunities that the inverted yield curve offers.
May 31, 2022
Some community financial institutions may not know the benefits of interest rate swaps. Not only do they help you manage interest rate risk, but they also help you retain customers. Your customers want fixed rates, especially as rates rise. You can help them with interest rate swaps — and you gain noninterest income too. We explain how.
May 11, 2022
Bankers have long been waiting for interest rates to increase so that net interest margins would rise. Yet, there are other factors in play today, such as high inflation, labor shortages, and credit risk. We review the current rising rate landscape and provide approaches to manage through it successfully.
Apr 29, 2022
While the yield curve is flat to inverted, community financial institutions are looking for fee income. Hedging loans for your customers provides you with upfront fee income, immediately recognized as earnings. Is this a good time to consider hedging for your institution and gain extra income? While some may feel hedging could be cumbersome, it can be easier than you think. Join us as we explore how it works.
Apr 22, 2022
Community financial institutions are looking for opportunities to increase income, mitigate risk, and retain customers in this current flat to inverted yield curve environment. Look no further. Hedging can provide your institution with these opportunities. We explain how.
Mar 23, 2022
LIBOR was retired for new contracts at the end of last year. But, many community financial institutions have not started using SOFR, the recommended guidance of the Alternative Reference Rates Committee. Are you one of those institutions? Let’s explore why some institutions are hesitant to transition to SOFR and examine another replacement index option.
Dec 15, 2021
We have been talking about the transition away from LIBOR for a few years now and the end date is upon us. No new LIBOR exposures are allowed after December 31, 2021. Many community financial institutions are making progress, but only 24% had set a replacement rate, as of this summer. Is your institution prepared for LIBOR’s end date? Here are a few recently released regulatory expectations, to keep you moving for a successful transition.
Oct 13, 2021
The LIBOR transition is well underway. But, how are financial institutions doing in their progress, with the deadline of January 1, 2022, looming? Some institutions have made firm decisions on the replacement index, while others are considering multiple replacement rates. We explore the findings from a recent accounting firm survey to give you an idea of how you compare to your peers in the LIBOR transition.
Jun 1, 2021
Your international business customers need to manage risk, both interest rate risk and foreign exchange risk. Educating them on hedging and how it can mitigate these risks will not only help your customers, but solidify your customer relationships and allow you to grow income. We walk you through a potential scenario with a customer as they invest in equipment built overseas and how hedging can provide predictability and mitigate risk.
Mar 31, 2021
Financial institutions are awash in cash these days. How long will this situation last and what is a banker to do about it? We cover the economic indicators affecting liquidity, such as inflation and employment, and how to manage the effects of inflation with revenue protection.
Mar 23, 2021
The transition from LIBOR to SOFR has been in the works for a while. But, now is the time to face it head-on. We give you six important steps to take right now to ensure you are compliant by the time LIBOR retires: organize your team, make a plan, communicate with stakeholders, assess exposures, remediate contracts, and set up operational readiness.
Jan 27, 2021
Since many community financial institutions have syndicated loans that are pegged to LIBOR, its discontinuation is especially important. Here are the next steps to take in the move from LIBOR to SOFR, including contract reviewing and using fallback language, for a seamless transition.
Jun 29, 2020
Have you thought of using interest rate swaps to help shore up your margins? We explain how.
May 12, 2020
Many community financial institutions are looking for ways to help their customers with loan modifications. Interest rate swaps are one way to go.
Nov 29, 2019
Financial institutions looking to manage interest rate risk may want to consider an interest rate collar. We map it out for you.
Sep 26, 2019
As the world struggles to make sense of the fact that short-term rates are currently higher than long-term rates, we provide some insight.
Aug 21, 2019
It's been nearly four months since the yield curve inverted for the first time in nearly 12Ys. What should your institution be doing now to protect itself?
Aug 14, 2019
Implementing a hedging strategy involves many elements, such as determining the economic risks your bank faces. We walk you through it.
Jul 1, 2019
Yield maintenance can be confusing. But, it doesn't have to be. We walk you through it.
May 17, 2019
Valued for their flexibility, forward rate lock agreements can be customized to fit the requirements of both your bank and your borrower. We explain how.
Apr 23, 2019
Financial hedges are a bit like shock absorbers on a car. They can help reduce the volatility or bumps a bank may experience. But, you need a good hedging plan to ensure success.
Mar 21, 2019
Many community banks tell us that in this rate environment, plenty of commercial customers seek the stability of a fixed loan coupon. We show you how to do this as a win-win for both your bank and your customer.
Feb 28, 2019
Banks will soon need to adjust their loans to a new benchmark known as the Secured Overnight Financing Rate (SOFR). What is involved in this transition?
Aug 17, 2018
With a flat yield curve, certain tools can provide customers with the products they want while mitigating risk for the bank. We give you the skinny on some of these helpful tools.