Capital Markets School - October 2023

Internal Use Only

Phase 7 (Year 2) Use the Decision Sheet to document amounts of loans, deposits, investment security purchases, and borrowings • Turn in Loan and Deposit cards with your sheet Your new balance sheet structure will be modeled for Earnings at Risk exposure •Results will be returned after lunch

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Internal Use Only

Phase 8 • Prepare a group presentation of your Year 1 strategy and actual balance sheet. Include your forecasted liquidity position and actual liquidity position, as well as differences in your anticipated interest rate risk profile. • Also include your Year 2 strategy and actual balance sheet, and how your strategy changed from Year 1 to Year 2. • Include your forecasted liquidity position and actual liquidity position, as well as differences in your anticipated interest rate risk profile for Year 2. • How could you have used a derivative to achieve your goals?

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