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Home > News & Events > Conferences & Events > Risk Management Webinar: Risk Management in a Flat-to-Inverted Yield Curve Scenario




Risk Management Webinar: Risk Management in a Flat-to-Inverted Yield Curve Scenario

Monday, May 1, 2006

This event, co-hosted by the National Community Investment Fund and the Federal Deposit Insurance Corporation, featured a discussion of recent FDIC research on the yield curve and a banker-led discussion of risk management strategies employed during flat or inverted yield curve scenarios.

Presentation: Risk Management Webinar: Risk Management in a Flat-to-Inverted Yield Curve Scenario

Viewers must use either RealPlayer 7 or Windows Media Player. Both can be installed on computers. To install RealPlayer, go to http://www.real.com/player/?src=downloadr, and to http://www.microsoft.com/windows/windowsmedia/default.aspx to install Windows Media Player.

Transcript: Risk Management Webinar: Risk Management in a Flat-to-Inverted Yield Curve Scenario

For recent FDIC research on the yield curve, see the February 22, 2006, issue of FYI: "What the Yield Curve Does (and Doesn't) Tell Us," at http://www.fdic.gov/bank/analytical/fyi/2006/022206fyi.html.

Partners and Presenters

  • Norm Williams, Chief, Economic Analysis, and Ross Waldrop, Senior Financial Analyst, Federal Deposit Insurance Corporation, discussed research done by the FDIC on the current interest rate environment focusing on:
    • Theoretical background on interest rates and yield curve dynamics; relationship to economic activity.
    • What influences the yield curve's shape, and why does it sometimes invert? A look at recent trends.
    • Historical perspectives on flat yield curve impacts on the banking sector:
      • Margin compression and implications for asset liability management.
      • Liquidity risk and implications for managing cash flows.
      • Credit risk and implications on portfolio construction and loan mix.
  • Paul Hudson, President and CEO, Broadway Federal Savings Bank, Los Angeles, gave a presentation on interest rate management as it related to pricing of loans and deposits, which led to successful outcomes for the CDBI.
  • David Oser, Senior Vice President, ShoreBank Chicago, discussed strategies to manage interest rate risk in the bond portfolio and for asset liability management.
  • Saurabh Narain, Chief Fund Advisor, National Community Investment Fund, Chicago, provided some examples of successful (and not so successful) strategies in the above context.

Last Updated 05/15/2006 communications@fdic.gov

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