Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques
After completing this reading, you should be able to: Discuss how asset-liability management strategies can help a bank hedge against interest rate risk. Describe interest-sensitive gap management and apply this strategy to maximize a bank’s net interest margin. Describe duration gap…
Covered Interest Rate Parity Lost: Understanding the Cross-Currency Basis
After completing this chapter, you should be able to: Differentiate between the mechanics of FX swaps and cross-currency swaps. Identify critical factors that affect the cross-currency swap basis. Assess the causes of covered interest rate parity violations after the financial…
Managing Nondeposit Liabilities
After completing this reading, you should be able to: Differentiate the various sources of non-deposit liabilities at a bank. Describe and calculate the available funds gap. Discuss the factors affecting the choice of non-deposit funding sources. Calculate the overall cost…
Determinants of Interest Rates
After completing this chapter, the candidate will be able to: Define and recognize the components of interest rates, including real risk-free rate, inflation rate, default risk premium, liquidity premium, and maturity risk premium. Explain how the components of interest…
Interest Rate Swaps
[vsw id=”0-51-FHbYmE” source=”youtube” width=”611″ height=”344″ autoplay=”no”] AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, you should be able to: Define and recognize the definitions of the following terms: swap…
Immunization
AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following terms:cashflow matching,immunization (including full immunization),Redington immunization. Construct…
General Cash Flows and Portfolios
[vsw id=”8XRgyl_wGP0″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following…
Bonds
[vsw id=”P_DaiMkZOFc” source=”youtube” width=”611″ height=”344″ autoplay=”no”] AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following…
Loans
[vsw id=”sFSv5ESO930″ source=”youtube” width=”611″ height=”344″ autoplay=”no”] AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following…
Annuities/cash flows with non-contingent payments
[vsw id=”vIQKtXXGqhc” source=”youtube” width=”611″ height=”344″ autoplay=”no”] AnalystPrep’s Actuarial Exams Preparation Materials For our question bank, study notes, quizzes, and all our video lessons: https://analystprep.com/shop/learn-practice-package-for-soa-exam-fm/ After completing this chapter, the candidate will be able to: Define and recognize the definitions of the following…
