[Chapter 2] ALM 201 - Part I - Exploring Income Simulation (03-11-14)

Mark H. Smith's Podcast

English - April 03, 2014 00:00 - 2 minutes - 2.76 MB
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Previous Episode: Implementing the NCUA Liquidity Risk Regulations (02-06-14)

Next Episode: Managing Your Investment Portfolio in a Rising Rate Environment (04-22-14) - Chapter 1

Chapter 2: Balance Sheet-Related Risks

Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.