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Financial Intelligence

Achieve Optimal Performance: Balance Sheet Strategies for a Flattening Yield Curve Environment

Presented by: Frank Farone, Managing Director of Darling Consulting Group (DCG)

Following a period of prolonged economic weakness, the economy is finally heating up and the Federal Reserve is tightening by raising interest rates. While net interest margins are improving for many, others are feeling the squeeze from the flattening yield curve. Navigating through this environment poses challenges from a liquidity, income and regulatory perspective. Now is the time to reexamine your asset/liability management strategies to optimize net interest income and grow capital while reducing risk.

Topics include:

Balance sheet strategies for navigating a flattening/inverted yield curve environment

The math and the mystery behind the EVE/NEV, and why many will reach “High Risk” levels

Investment strategies to consider and avoid as rates rise

Profitable loan pricing tactics to remain competitive

Derivatives explored – the “new” accounting rules are a game changer, opening up opportunities for those bold enough to take advantage

Wholesale funding – What’s the optimal level? Fund short or go long? Alternatives explored

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