CMS Sept 2022

Internal Use Only

Traditional Back-to-Back Swap

Institution’s Cash Flows: Net Fixed Cash Flows from Borrower

5.50%

Institution Pays Fixed Institution Receives Floating

(5.50%)

SOFR + 2.50%

Net Floating to Institution

SOFR + 2.50%

59

Internal Use Only

Client Derivative Documentation

• Master Agreement • Signed suitability documentation • Resolutions authorizing execution • ACH authorization for payments • Swap confirmation

60