Conferences & Education
June 7-8, 2011
Investment Strategies for Community Banks
- Basic Bond Evaluation Tools
- ALCO Strategies in an Uncertain Environment
- Cross-Sector Bond Analysis
- ALM in the Current Environment
- FHLB – Using Swaps to Manage ALM
Bond University is ideal for those with intermediate bank investment experience and/or training.
Bond Graduate School is ideal for those with advanced training and/or bank investment experience. Learn more about Bond Graduate School here.
Why You Should Attend
Bond University helps you identify the most appropriate investment alternatives given your bank’s asset liability position, interest rate bias, risk tolerance, loan funding needs and competitive environment.
Combining objective analytical tools to identify value, with a conceptual learning environment, Bond University teaches you a methodical approach to developing portfolios to meet your bank’s needs.
Who Should Attend
- Chief Executive Officers
- Chief Financial Officers
- Controllers & Investment Managers
Schedule & Program
As of April 29, 2011
|Tuesday, June 7|
|8:00-9:00 am||Introduction/Developing a Routine|
|9:00-10:30 am||Basic Bond Evaluation Tools|
|10:45 am-12:15 pm||Agency Bonds, Municipal Bonds, Riding the Yield Curve|
|12:15-1:30 pm||Lunch with Networking|
|1:30-3:00 pm||MBS, CMOs, ARMs|
|3:30-5:00 pm||Pre- and Post-Purchase Analysis|
|5:30 pm||Dinner & Entertainment hosted by Vining Sparks|
|Wednesday, June 8|
|7:30-8:00 am||Continental Breakfast with Open Q&A Forum|
|8:00-9:30 am||Cross Sector Bond Analysis|
|9:30-10:30 am||ALCO Strategies in an Uncertain Environment|
|10:45 am-12:15 pm||ALM in the Current Environment|
|12:15-1:30 pm||Lunch with Networking|
|1:30-3:00 pm||FHLB – Using Swaps to Manage ALM|
|3:30-5:00 pm||Hot Topics|
|5:00-5:30 pm||Open Q&A Session|
Introduction/Developing a Routine
In this session participants will learn that organization is at least as critical as time spend in developing a high performing portfolio. An introduction to the wealth of financial literature and online models 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
Good analysis should help the portfolio manager measure, monitor and control the portfolio management process. In this session a discussion of several terms and tools used by high performing portfolio managers will take place. The discussion will include:
- Income and yield analysis & comparison
- Consideration of diversification among and within sectors
- Pledging requirements in your portfolio
- Duration (price volatility) and duration drift as interest rates change
- Convexity – what is it and how it can benefit the portfolio
- Call protection
- Cash flow modeling and stability
- Is there a place for market timing in my portfolio
- Flexibility to meet unanticipated cash needs
- Market liquidity considerations
Agency Bonds and Municipal Bonds
Agency bonds come in a variety of issuers and types. In this session we will cover both the issuers of callable bonds:
As well as the different structures offered by each issuer such as:
- callable bonds
- step ups
- mandatory redemption
- indexed floaters
- range floaters
- de-leveraged bonds
We will also discuss the difference between agency debentures and mortgage backed securities.
Recent changes have expanded the opportunities in the municipal market. In this session we will familiarize participants with the differences between the four major classes of municipal bonds:
- Bank Qualified
- 2% Rule bonds
- Non-Bank Qualified General Market bonds
- Taxable Municipals including Build America Bonds
During the municipal portion of this session we will cover a number of important topics including the following:
- Classes of municipal bonds
- Credit protection
- The TEFRA calculation
- Original issue discount
- Yield curve comparisons
- Price volatility of tax free bonds versus taxable issues
- Premium (“cushion bonds”) vs. par bonds
- Advanced refunding
MBS, CMOs, 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 the following topics:
- Original face / Current face / Factor
- Gross Coupon / Net coupon / Servicing fee
- Prepayment speed
- Average life / Duration
- Weighted Average Life Graph
- Collateral and pool prepayment history
- Geographic diversity
- Loan purpose
- Pool size and seasoning
- Margin / Periodic Cap / Life Cap
- Index / Reset Date
- Prepayment vector models for multiple interest rate scenario movements
Pre- and Post-Purchase Analysis
This session will help executives develop a list of the pre and post purchase documentation required from to satisfy today’s regulatory environment. Time will be spent covering the following Bloomberg screens:
- Yield Table
- Description Screens
- Price Volatility Screens
- Cash Flow Screens
- Prepayment Vector Tables
Cross Sector Bond Analysis
This session when combined with the other sessions 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 rate bias, in other words to impact the risk profile of the bank does the institution need bonds with defensive or offensive characteristics
- Prioritization of investment policy risk levels with respect to market price volatility, cash flow volatility, liquidity
- Comparing alternatives using bond analytical tools including yield, spread, price volatility, total return over a horizon date and cash flow characteristics.
ALM in the Regulatory Environment
In this session portfolio managers will learn to balance interest -rate risk, the investment portfolio and the need for liquidity at the same time they strive toward earnings stability and capital preservation. Topics covered will include the assessment of re-pricing risk, options risk, basis risk and yield curve risk. A discussion of economic value of equity will also take place.
FHLB – Using Swaps to Manage ALM
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. 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.
Hot Topics and Open 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 the ones that are dominating the headlines.
George Hancock, SVP, Vining Sparks
George has been involved in financial analysis and investment consulting for financial institutions since 1982, beginning his career at Arthur Young & Co. (now Ernst & Young). From 1986 to 1987, he served as the senior vice president and controller of a multi-billion dollar financial institution, and in 1987, began his career with Union Planters Bank (and later Vining Sparks via merger in 1990). George worked in the Portfolio Strategies division helping institutions determine the impact of tax, regulatory and accounting changes on the asset/liability management of the institution. George later held the position of trader on the Capital Markets Desk and was involved in the acquisition and disposition of more than $1 billion of mortgage and consumer loan portfolios.
John Pender, VP, Vining Sparks
John has been involved in the banking and investment business since 1996. He is vice president of sales in the Portfolio Management Group of Vining Sparks, where he serves institutional clients nationwide. The Portfolio Management Group provides proprietary services to their clients in the areas of asset liability management and Investments. John previously worked in investment strategies, which provides research and technical assistance to the firm’s customers and sales representatives. Prior to joining Vining Sparks IBG, L.P., John was employed by PricewaterhouseCoopers for five years where he performed both external and internal audit procedures on financial services clients. These procedures included a review of the allowance for loan loss, financial statement preparation, investment analysis, and compliance with policies regarding loan/deposit operations.
Will Taylor, SVP, Vining Sparks
Will has been involved in the banking and investment business sine 1986. His career began as a management trainee for Union Planters Bank (Regions), which was at the time, the 10th largest bank broker dealer in the world. Under his management, the group grew to over $3.5 billion in warehouse lending. In addition to working in the lending area, Will was active in the trading operation. During his tenure he oversaw the financing and securitization of the first collateralized mortgage backed obligations (CMOs), fixed and adjustable mortgage-backed securities and Small Business Administration loan securities. Will joined Vining Sparks as a result of a combination of Union Planters dealer operation with Vining Sparks in September 1990.
WIB Member Bank: $885
Nonmember Bank: $1,095
After May 9, fees will be $975/$1,195
New Bank Discount
Banks In Org. or WIB Member Banks opened less than 7 years may subtract $200 from Registration Fees.
WIB Season Passholders: Check with your bank or
contact WIB to see if you qualify for free registration.
WIB Dividend Rewards: Click here or contact WIB to see if your bank has a Dividend Rewards balance.
Registrations into Bond University are not currently accepted for individuals from the Income/Bond Market.
Registration fees minus $75 processing fee per registrant will be refunded if cancellation is received by May 13, 2011. No refund if cancellation is received after May 13, 2011. Substitutions welcomed.
Dinner & Entertainment hosted by Vining
Enjoy dinner and a Las Vegas Show, hosted by Vining Sparks. You will be treated to dinner at Samba, The Mirage’s popular Brazilian-style barbecue steakhouse, followed by the ventriloquism of Terry Fator. Winner of TV’s “America’s Got Talent”, Terry Fator continues to capture the hearts and funny bones of America with Terry Fator: Ventriloquism in Concert live at The Mirage. Without moving his lips, Fator leaves audiences stunned with celebrity singing impressions and unparalleled ventriloquism. He brings to life the idiosyncrasies of characters including Winston, the Impersonating Turtle, the loveable Emma Taylor and the newest addition Wrex, a crash test dummy. With comedic banter and hilarious takes on musical superstars such as Cher, Elvis Presley, Garth Brooks, Maroon 5 and more. Terry Fator: Ventriloquism in Concert is a one-of-a-kind entertainment experience.
Each full Bond University Registration includes one ticket for the special event. Additional tickets for guests may be purchased for $150 each. There is an additional fee of $25 for tickets purchased on-site.
Up to 14 hours of CPE Credits may be available upon completion of the program.
3400 S. Las Vegas Blvd.
Las Vegas, NV 89109
Main Phone: (702) 791-7111
Reservations: (800) 499-6311 or (702) 791-7444
Room Rate: $89 Single/Double (Plus 12% tax)
Hotel Cutoff: May 9, 2011
Contact the hotel at the directly at the phone numbers above and mention WIB Bond University to obtain the conference rate.
Directions from McCarran International Airport
Exit the airport on Swenson. Turn left at Tropicana Avenue. Go about 1 1/2 miles until you reach Las Vegas Blvd. Turn right on Las Vegas Blvd. and go about a mile. The Mirage is on the left side of the Strip (Las Vegas Blvd.). You should anticipate 15-30 minutes travel time, depending on traffic.
Rental Car Discount
Discount rates are available for:
- Avis rental cars. Visit www.avis.com or call Avis at (800) 331-1600 and mention WIB’s group code J990669.
- Hertz rental cars. Call Hertz at (800) 654-2240 and refer to convention code 04DT0003.
- Thrifty: 1-800-THRIFTY (857-4389) – www.thrifty.com; CD# 004C007855
Vining Sparks is nationally recognized as a leading broker/dealer in serving the investment needs of institutional investors. www.viningsparks.com
Darling Consulting Group specializes in education, strategic planning and management tools for banks, thrifts and credit unions. www.darlingconsulting.com
Bond University was the most comprehensive course I have attended relating to investments and the capital markets.
— Tracy Ruelas-Hashimoto, VP/Controller
Santa Cruz County Bank, CA