Capital Markets Examiner School, Providence, RI

Balance Sheet Alignment with the Yield Curve

 Different points along the balance sheet yield curve all pose different risks to the bank.

 What strategies will banks employ along the different segments of the yield curve depending upon the recent, current and expected yield curve shape?

 How does this approach address the banks risk vs. rewards strategy?

 Are Management/ALCO strategies appropriately framed in policy limits and risk management practices?