Conferences & Education

Investment Tools & Strategies for Community Banks

Learn to identify the most appropriate investment alternatives given your bank’s asset liability position, interest rate bias, risk tolerance, loan funding needs and competitive environment. Bond University teaches a methodical approach to developing portfolios to meet your bank’s needs by combining objective analytical tools with a conceptual learning environment.

• Basic Bond Evaluation Tools and Agency Issues
• Municipal and Corporate Bonds
• MBS, CMOs and ARMs
• Using Interest Rate Caps and Swaps to Improve Asset Liability Management
• Pre- and Post-Purchase Analysis
• Credit Review of Municipal Bonds
• Cross-Sector Bond Analysis
• Economic Overview, Hot Topics and Q&A Session

Bond University is ideal for bankers with intermediate bank investment experience and/or training.

Bond Graduate School is ideal for bankers with advanced bank investment experience, training or past attendees of Bond University. Learn more about Bond Graduate School.

Who Should Attend?

• Chief Executive Officers
• Chief Financial Officers
• Controllers
• Investment Managers

Schedule

Program

Introduction/Developing a Routine

Participants will learn that organization is as critical as time spent in developing a high performing fixed income portfolio for a financial institution. An introduction to the wealth of financial literature and online resources will be presented to illustrate how fast and easy it is to compare different securities across sectors. During this session we will present a methodical approach for an efficient daily, weekly and monthly set of tasks that together create a dynamic routine for the busy portfolio manager.

Basic Bond Evaluation Tools and Agency Issues

Good analysis should help the portfolio manager measure, monitor and control the portfolio management process. We’ll discuss several terms and tools used by high performing portfolio managers. The discussion will include income and yield analysis, diversification among and within sectors; duration, duration drift, convexity, option adjusted spread and total return analysis. Agency bonds come in a variety of issuers and types. This session will cover the different structures offered by issuers such FNMA, FHLMC, FHLB and FFCB. Structures covered include bullets, callable issues, step ups, mandatory redemption issues, indexed floaters, range floaters and de-leveraged bonds. Discussion will include differences between agency debentures and mortgage backed securities.

Municipal and Corporate Bonds

Recent changes in the bank qualified municipal sector have expanded the opportunities in municipal securities. In this session we will familiarize participants with the differences between types of municipal securities such as bank qualified, bank eligible (2% Rule), general market and taxable issues. Topics covered will include credit protection, TEFRA calculation, original issue discount, yield curve comparisons, price volatility characteristics of tax free bonds, high coupon cushion bonds and pre-refunded issues.

MBS, CMOs and ARMs

High performing banks typically allocate a large portion of their portfolio assets to a combination of fixed rate Mortgage Backed Securities (MBS), Adjustable Rate Mortgage pools (ARMs) and Collateralized Mortgage Obligations (CMOs). In this session the instructors will cover MBS/CMO/ARM structure, the risk of options embedded in these instruments and important factors to consider when evaluating structures. Upon completion of this session investors should have an understanding of original face, current face, factor, gross coupon, net coupon, servicing fee, prepayment speed, average life and prepayment vector models.

Using Interest Rate Caps and Swaps to Improve Asset Liability Management

Managing the asset liability exposure of the bank can take place on the liability side of the balance sheet as well as the asset side. Off balance sheet products are also an option. In this session we explore the use of interest rate floors, caps and swaps as well as FHLB funding to modify the risk profile of the institution.

Pre- and Post-Purchase Analysis

Develop a list of the pre- and post-purchase documentation required to satisfy today’s regulatory environment. Time will be spent covering the Bloomberg screens that address yield, price volatility, cash-flow and prepayment vector tables.

Credit Review of Municipal Bonds

The requirements of Dodd-Frank will require investment managers to determine whether municipal and corporate debt securities held in portfolio are investment grade. This session will provide an overview of the tools Vining Sparks offers to assist managers in compliance with the proposed guidelines.

Cross-Sector Bond Analysis

This session helps the investment manager develop the thought process for decision-making including using a decision flowchart with documentation that covers identifying your institutional asset/liability exposure to rate shifts; determining objectives & constraints embedded in the institution’s liquidity, earnings and cash flow requirements; consideration of the interest rate embedded in your balance sheet; prioritization of investment policy risk levels with respect to market price volatility, cash flow volatility and liquidity; and comparing alternatives using bond analytical tools including yield, spread, price volatility, total return over a horizon date and cash flow characteristics.

Economic Overview

A review of the fiscal and monetary situation as well as the QE program will take place. A look back at the first quarter of 2013 economic performance and a look forward to the remainder of 2013 economic, fiscal and monetary policy.

Hot Topics and Q&A Session

The hot topics session is designed to cover current and vital areas of interest. Past years’ topics have covered areas such as other-than-temporary impairment, private label MBS, public sector debt, FNMA and FHLMC conservatorship. The topics for this year will be those that are dominating the headlines.

Speakers

• Will Taylor, SVP, Vining Sparks
• George Hancock, SVP, Vining Sparks
• Brian Hey, SVP, Vining Sparks
• Rick Redmond, SVP, Vining Sparks
• Craig Dismuke, SVP, Vining Sparks

About Vining Sparks: A nationally recognized leading broker/dealer serving the investment needs of institutional investors. Learn more at www.viningsparks.com.

Registration Information

Early Bird Registration Fees (Before April 13)

Regular Registration Fees (After April 13)

Registrations are not currently accepted for individuals from the Income/Bond Market.
WIB Associate Members are not permitted to attend this educational program.

De Novo Discount
Banks In Org. or WIB Member Banks open less than 7 years may register at $695.

Registration Includes
Each full Bond University registration includes breakfast and lunch both days and one ticket for the Dinner Event. Additional Dinner Event tickets for guests may be purchased for $150 each. There is an additional fee of $25 for tickets purchased on-site, if available.

Cancellation Policy
Registration fees minus $75 processing fee per registrant will be refunded if cancellation is received by April 18. No refund if cancellation is received after April 18. Substitutions welcomed. WIB is not responsible for airfare penalties incurred due to the cancellation of this program.

Our Guarantee
If you are not completely satisfied with this program, contact us within 10 days of the workshop and we will cheerfully refund your registration fee.

CPE Credit
Up to 14 hours of CPE Credits may be available upon completion of the program. Contact WIB for additional information.

Dinner and Event
Enjoy dinner and a Las Vegas Show, hosted by Vining Sparks. Each full Bond University registration includes one ticket for the Dinner and Event. Additional tickets for guests may be purchased for $150 each. Additional fee of $25 for tickets purchased on-site, if available.

Hotel

The Mirage
3400 Las Vegas Boulevard South
Las Vegas, NV 89109
www.mirage.com 

Main Phone: (702) 791-7444
Reservations: (800) 499-6311

Reservation Deadline: March 26, 2013

Room Rate: $97 per night
Resort Fee: $25 per night
Tax: 12%
Please contact the hotel directly and mention WIB Bond University to obtain the conference rate.

Travel Information

McCarran International Airport to the Mirage
Exit the airport on Swenson. Turn left at Tropicana Avenue. Drive about 11/2 miles until you reach Las Vegas Blvd. Turn right on Las Vegas Blvd. Drive about a mile. The Mirage is on the left side of  Las Vegas Blvd. Anticipate 15-30 minutes travel time, depending on traffic.

Rental Car Discounts

• AVIS: (800) 331-1600 – www.avis.com; AWD number J990669
• Hertz: (800) 654-2240 – www.hertz.com; convention code 04DT0007
• Thrifty: 1-800-THRIFTY (857-4389) – www.thrifty.com; CD# 004C007855