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Financial Intelligence

Achieve Optimal Performance: Balance Sheet Strategies for a Flattening Yield Curve Environment

Presented by: Frank Farone, Managing Director of Darling Consulting Group (DCG)

Following a period of prolonged economic weakness, the economy is finally heating up and the Federal Reserve is tightening by raising interest rates. While net interest margins are improving for many, others are feeling the squeeze from the flattening yield curve. Navigating through this environment poses challenges from a liquidity, income and regulatory perspective. Now is the time to reexamine your asset/liability management strategies to optimize net interest income and grow capital while reducing risk.

Topics include:

Balance sheet strategies for navigating a flattening/inverted yield curve environment

The math and the mystery behind the EVE/NEV, and why many will reach “High Risk” levels

Investment strategies to consider and avoid as rates rise

Profitable loan pricing tactics to remain competitive

Derivatives explored – the “new” accounting rules are a game changer, opening up opportunities for those bold enough to take advantage

Wholesale funding – What’s the optimal level? Fund short or go long? Alternatives explored

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The content provided in these disclosures is presented as a courtesy to be used only for informational purposes and is not represented to be error free. The FHLBNY makes no representations or warranties of any kind with respect to the content contained herein, such representations and warranties being expressly disclaimed. The FHLBNY is not a financial or investment advisor.

Moreover, the FHLBNY does not represent or warrant that the content of these disclosures is accurate, complete or current for any specific or particular purpose or application. It is not intended to provide nor should anyone consider that it provides legal, accounting, tax or other advice. Such advice should only be rendered in reference to the particular facts and circumstances appropriate to each situation. The FHLBNY encourages you to contact appropriate professional(s) and consultant(s) to assess your specific needs and circumstances and to render such advice accordingly. In addition, the FHLBNY is not endorsing or recommending the use of the means or methods contained in or through these disclosures for any special or particular purpose.

It is solely your responsibility to evaluate the risks or merits of any funding or investment strategy. In no event will FHLBNY or any of its officers, directors or employees be liable for any damages — whether direct, indirect, special, general, consequential, for alleged lost profits, or otherwise – that might result from any use of or reliance on these materials.

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