Interest Rate Risk Management Q&A with Dale Sheller
Jul. 11, 2023
Larry chats with Dale
Sheller with the Baker Group about why the Federal Reserve recently decided to not increase
interest rates, the implications of the tightening cycle on margins,
preparations of financial institutions for the end of the tightening cycle, the
reasons for an inverted yield curve, regulators' responses to unrealized
investment portfolio losses, and the benefits and structure of the bank term
funding program in mitigating risk.
Interest Rate Risk Management Q&A with Dale Sheller
Here is a quick
breakdown of what is covered during the podcast:
[1:12] The Fed
skipped raising interest rates at the last meeting – why did they do that and
are they done raising interest rates?
[2:24] Is the recent
fast-tightening cycle good news for net interest margins?
[4:27] How fast does
the cost of funds catch up to the yield on earning assets? Has it been faster
in this cycle?
[5:27] How are
financial institutions preparing for the Fed to end the tightening cycle?
[7:50] What do we
have an inverted yield curve?
[9:42] How are
regulators responding to unrealized losses on investment portfolios, and why?
[11:38] What are the
advantages of the bank term funding program for financial institutions?
[14:37] Could the
bank term funding program mitigate the risk of unrealized losses?
[16:05] Deposits
increased dramatically over the pandemic, has that trend slowed down? Are
financial institutions seeing most of these deposits as ‘hot money’ or core
deposits?
After the podcast, be sure to check out Dale’s complimentary webinar, Interest Rate Risk Management Today.
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More About Our Guest
He works with clients on investment portfolio strategies, interest rate risk management, liquidity risk management, and regulatory issues. Dale regularly speaks at educational seminars nationwide and serves as a faculty member for multiple banking schools.
Visit Dale's webinar page for his library of on-demand and upcoming webinars.
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