• Understand and measure interest rate risk
• Interpret NEV and income risk metrics for compliance and profitability
• Increase your understanding of current ALM regulations
• Gain best practices in ALM examine preparation
• Improve your asset-liability model validation process
• Discover the steps to developing a balance sheet funding strategy
• Review the advisory on Interest Rate Risk Management

Wednesday, October 27, 2010

8:00 AM – 8:30 AM Registration & Continental Breakfast
8:30 AM – 4:30 PM Seminar

Building Blocks of ALM: Basic Concepts of Yield and Duration

• Overview of fixed income terms and definitions
• Measures of duration and how it is used with NEV
• Bond pricing and the valuation of fixed income securities
• Identify the different measurements of yield and what they mean
• How NEV is used to calculate the duration of a credit union’s assets vs. the duration of a credit union’s liabilities
• How fluctuations in interest rates impact the sensitivity of NEV
• Positive and negative convexity and what it means
• Review the Fed funds futures contract and understand what it is really telling you

ALM: Interest Rate Risk (IRR) Using Gap and Net Interest Income (NII)

• Review of fundamental ALM tools including gap and NII
• How to interpret and use calculations
• How to utilize tools to manage and monitor IRR
• Limitations

ALM: Interest Rate Risk Using NEV

• How NEV is calculated, what it is and why it’s an important balance sheet management tool
• How to interpret the results of an NEV analysis and assess your institution’s IRR
• Different balance sheet strategies and how they can affect your risk profile
• Understanding assumptions, their affect and impact on both the NEV and NII analyses
• Differences between discount rates and offering rates
• Prepayment assumptions
• Assumptions based on indices, yield curves and forward rates
• Volume assumptions – static vs. growth

Non-Maturity Deposits

• The importance of valuing your non-maturity shares
• Different valuation methods and how they can affect your risk profile
• Effects of assumptions
• Pros and cons of the use of par values

Thursday, October 28, 2010

8:00 AM – 8:30 AM Continental Breakfast
8:30 AM – 3:00 PM Seminar

Understanding Economic Statistics and Their Effect on Interest Rates

• How economic data influences the overall economy
• Key economic statistics for financial institutions
• How these statistics and other financial events impact interest rates

Evaluating Funding Options

• Liquidity management
• Identifying various sources of funding
• Funding attributes and their varying affects

Hands-on Group Case Study

• NEV
• NII

ALCO Best Practices

• What reports should be shared with your board of directors
• Which calculations should be the focus of the ALCO
• What should be included in ALCO meeting minutes
• Suggested minimum ALM analytics and reporting
• Advisory on Interest Rate Risk Management

FMS is registered with the National Association of State Boards of Accountancy as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses. Complaints regarding sponsors may be addressed to: The National Registry of CPE Sponsors, 150 Fourth Avenue, North, Suite 700, Nashville, TN 37219-2417 Web: www.nasba.org.

• Level: Basic to Intermediate
• Prerequisites: None
• Advance preparation: None
• Field of Study: Finance
• Credit Hours: Up to 14
• Instructional Method: Live-Group

For more information regarding administrative policies such as complaints or refunds, call 800-ASK-4FMS (800-275-4367).

Any credit union professional seeking to deepen their understanding of asset-liability management measurement tools and strategy design, including:

• CEOs and CFOs
• Financial Analysts
• Auditors
• Treasury staff

Meeting Location Information
Red Rock Casino, Resort & Spa
11011 W. Charleston Blvd.
Las Vegas, NV 89135

Reservations: 866-767-7773
Special room rate: $125 single/double
Deadline for rate: October 4, 2010

When calling for hotel reservations, identify yourself as a Financial Managers Society meeting attendee to secure a room at the reduced rate.

Please Note:
Upon arrival a credit card will be requested and authorized for room, tax, & $100 per day for incidentals. At the time of check out/departure the deposit will be credited toward the final bill and the remaining balance will be charged, any left over authorization will be released back onto the card used at the time of check in.

Ground Travel
Please visit this hotel website for detailed maps, directions and shuttle service information. http://www.redrocklasvegas.com/hotel/shuttle_info.php

Attire
Seminar attire is business-casual. Please bring a jacket or sweater as meeting rooms may be cool.

Refunds and Cancellations
A refund minus a $150.00 processing fee will be provided for cancellations received by FMS in writing by October 4, 2010. No refund can be given for cancellations received after that date; however, a substitution from your company is welcome. FMS reserves the right to change instructors or reschedule/cancel sessions when necessary. FMS is not responsible for airfare penalties that may be incurred due to the cancellation of FMS programs.

Save $100 with a Members-Only Team Discount!
FMS Members and their coworkers save $100 per person when they register two or more employees. Simply complete one form per person and deduct $100 from the fee.

Not an FMS Member? Join now and save with the team discount today!

A well-known figure in the investment community and a renowned expert in asset/liability management, Ms. Hollis has served as a principal of ALM First since the company was established. A popular industry speaker, her experience includes executing risk-management programs and implementing one of the first-ever uses of futures hedging and synthetic structures in the credit union industry. She also served as the portfolio manager for one of the first mutual funds offered exclusively for credit unions.

As a principal of ALM First, Ms. Calvert provides direction on the firm’s corporate strategy and manages both the sales and marketing departments and the funds management department. A frequent industry speaker, her topics of expertise include total balance-sheet management, investment types and characteristics, macroeconomics, and investment-portfolio risk analysis.

As a principal of ALM First, and an industry veteran with more than 20 years of investment experience, Mr. Manley manages the financial advisory teams and provides direction on the firm’s corporate strategy. During his tenure at ALM First, he has conducted numerous training sessions throughout the credit union industry.