Mark H. Smith's Podcast

The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works. Chapter 3: Leveraged Balance Sheet-Actual Rate Shock vs. Actual Performance

The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works. Chapter 1: The Balance Sheet Equation

The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works. Chapter 1: Welcome and Intro about Credit Unions

The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works.

Presented by Guest Speaker Jason Williams Do you like all of the investments in your investment portfolio? If you own callable securities you may be holding those securities longer than you have in the past. When interest rates rise, the dynamics of your investment portfolio will change. If you haven’t visited your investment strategy recently, 2014 may be a great time to do so. Jason Williams, Portfolio Manager at Moreton Asset Management, has spent 15 years managing over $2 billion in bond portfolio’s for institutions. He has worked extensively with credit unions and is knowledgeable as to the regulatory environment in which they operate. During this webinar he will cover: • Tapering: what does it mean and how might it affect your investment portfolio • Strategies for investing in a rising interest rate environment • Better and more efficient execution for buying and selling bonds and certificates of deposit This is neither an offer to sell nor a solicitation of an offer to b

In this chapter, we discuss: * Steps in Managing your Investment Portfolio * Regulations Affecting Credit Unions

In this chapter, we discuss: * Transparency in the Bond Market * The Difference between how stocks are traded and how bonds are traded.

In this chapter, we discuss: * Bond Market Classifications

In this chapter, we discuss: * Strategies for Investing in a Rising Rate Environment * How to create a Bond Ladder

In this chapter, we discuss: * Objectives * Fed Tapering Bond Purchases * How it might affect your investment portfolio * Bond Price vs. Yield

Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 7: Income Simulation and Wrap-Up Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 6: Gap Analysis Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 5: The Metrics for Estimating IRR + Methodologies to Estimate IRR Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 4: Surge Shares Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 3: Variables and Assumptions Impact the Outcome + Estimating Rate Sensitivity Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 2: Balance Sheet-Related Risks Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

Chapter 1: Welcome, Objectives, Let’s Talk about Your Credit Union Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.

In this presentation, we will briefly review the applicable regulations and their impact on different-sized credit unions. We will present a template to develop a liquidity risk policy. Additionally, we will present the attributes of a sound contingency funding plan and offer a template to assist in developing such a plan.

NCUA has proposed a major change in the capital requirements. A risk based capital requirement similar to other types of financial institutions is proposed for credit union over $50 million assets. In this webinar we will review the proposed requirements and their potential impact on credit unions. In this chapter, Mark covers the following: * Welcome to Preparing for Risk-Based Capital * What is Proposed? * NCUA proposes to implement a risk-based capital (RBC) criteria * Why is NCUA proposing RBC? * NCUA’s List of Major Risks Faced By Credit Unions * Characteristics of The RBC Proposal * Proposed Loan Categories * Investment Categories * Other Categories of Assets & Assets Risk-Weighted @ 0% * Net Worth & RBC Requirements to be considered well-capitalized * Examples of Risk Weights By Category * Definition of Weighted Average Life of Investments (WALI) * Definition of the Risk-Based Capital Numerator (Total Capital) * Scenarios & Questions * What to do Now * Summary