Items include
- 3 Case Studies
- 2 Webinars
- 47 BID Newsletters
hedging
Case Studies
The National Bank of Coxsackie struggled to match competitors' commercial loan rates, while managing larger, more complex deals. BLP® didn't require additional staffing or burden borrowers with extra costs − all while maintaining operational efficiency.
Prism Bank expanded into aircraft lending by partnering with PCBB and BLP, gaining a flexible, relationship-focused hedging team. This collaboration enabled Prism to confidently enter a new market and better serve its clients.
How PCBB helped a rural community bank compete with the big banks and win by helping them offer their customers long term fixed rates while getting a floating-rate asset on the books.
Webinars
Unlock the secret weapon that top lenders and borrowers are using to outsmart today’s volatile interest rate environment: master fixed-rate pricing with swaps and gain an unfair advantage in the lending marketplace.
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.
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.
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.
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.
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.
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.
Yield maintenance can be confusing. But, it doesn't have to be. We walk you through it.
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.
Rising inflation is a hot topic these days. Bankers are watching it closely to see its effects on certain market sectors, and subsequently, on its influence on their margins. Join us as we delve into what economists are saying and how interest rates could be affected. What are the implications of these trends for community financial institutions?
CFOs at community financial institutions have their hands full now more than ever — low loan demand, an overflow of deposits, margin pressure, potential credit quality issues, and more. To give you some food for thought on how other institutions are handling these challenges, we share a few stories from your CFO peers.
After being inverted for nearly two years, the yield curve has steepened, lessening pressure on bank profitability. The right portfolio management strategy going forward will depend on rate risk protection.
Hedging can alleviate interest rate risk, but many financial institutions have qualms about using it. We explain common concerns bankers may have and discuss the benefits of dipping a toe in anyway.
With unpredictable interest rates and a changing financial market, loan-level hedging can help your CFI’s portfolio. We discuss how hedging benefits your portfolio and steps for finding the right hedging partner.
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.
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.
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.
Secured Overnight Financing Rate (SOFR), the designated replacement for the LIBOR rate, faced its first test recently. We provide you with an update.
The LIBOR-SOFR transition is still happening. We have three steps to help you move forward.
The coronavirus has been on top of mind lately, yet the transition of LIBOR has not been delayed. We provide steps to keep moving forward with your plans.
The financial industry has been preparing to transition from LIBOR rates to SOFR rates for over two years. Now that the LIBOR cessation date is here, CFIs may still have questions. We discuss what the SOFR rate options are, how the LIBOR Act could impact your remaining LIBOR-based loans, and where to find helpful resources.
Economic indicators suggest that the Fed is likely to ease monetary policy by lowering the Federal Funds Rate at some point this year. We discuss what factors could influence the Fed’s decisions and how hedging strategies could benefit your CFI in this changing market.
A CFI’s bond portfolio can face serious risk when interest rates rise. Duration hedging can help moderate that risk, but many financial institutions don’t use it. We review the most common duration hedging strategies to consider for interest rate risk mitigation.
CRE developers and lenders are seeing a stressed landscape for their business, as predictions of workers returning to offices haven’t been fully realized. A forward rate lock hedge can help both sides of the lending transaction by fixing a rate on future loans.
In the current interest rate environment, forward rate locks offer both CFIs and borrowers an opportunity to mitigate interest rate risk. Femi Audifferen, SVP of Hedging Solutions at PCBB, explains why now might be an opportune time to hedge with a forward rate lock.
The economic market presents both challenges and opportunities for CFIs. From interest rate increases and talent shortages to loan demand and digital transformation investment, we dive further into both.
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.
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.
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.
Recently, several Fed speakers have indicated that rising inflation rates could lead to an increase in interest rates as early as late 2022. With the current economic uncertainty, how can community financial institutions prepare? We have four ways, including identifying opportunities in existing lending niches and adding more fee income.
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.
Have you thought of using interest rate swaps to help shore up your margins? We explain how.
The pandemic seems to have affected the adoption of SOFR. Will this delay the transition from LIBOR to SOFR?
Negative rates have been discussed lately, as recovery scenarios are laid out. Will negative interest rates happen in the US?
Many community financial institutions are looking for ways to help their customers with loan modifications. Interest rate swaps are one way to go.
Financial institutions looking to manage interest rate risk may want to consider an interest rate collar. We map it out for you.
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.
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?
Implementing a hedging strategy involves many elements, such as determining the economic risks your bank faces. We walk you through it.
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.
Seven things you can do to help ensure your bank meets regulatory expectations for your ALM program.
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.
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.
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?
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.
During this period of increasing rates, it will be particularly important how a bank positions its deposit portfolio and sets its growth strategies. Some things to consider for your bank.
