Capital Markets School - October 2023

Internal Use Only

Phase 5 (Year 2) • Based on your Year 1 balance sheet structure, as well as modeled EAR results, determine how you would restructure (or grow) the balance sheet based on the list of available assets and liabilities • Once all teams have their strategic direction, the market will reopen for teams to make loans and gather deposits through trading with other groups. • Investment securities will be available from the Broker-Dealer • Borrowing terms are on the provided sheet • You have 30 minutes

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Internal Use Only

Phase 6 (Year 2) Based on the loans and deposits you gathered, security purchases, and borrowings, revise you balance sheet structure

Calculate your liquidity position

Analyze your anticipated change in interest rate risk

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