Wednesday, September 30, 2020
12:00 – 1:30 pm (Eastern Time)
11:00 – 12:30 pm (Central Time)
10:00 – 11:30 am (Mountain Time)
9:00 – 10:30 am (Pacific Time)
About the Unique Financial Instruments 3-Part Bootcamp
Every financial professional needs to understand the definitions, roles, risks and opportunities associated with unique financial instruments, terms and concepts that impact the industry every day. These instruments have contributed to both the growth and challenges in global economies over recent years.
Derivatives, Interest Rate Swaps and indices like LIBOR are all concepts that professionals in banks, credit unions, investment firms, as well as consulting firms should understand well. This critical bank webinar series will cover these instruments in detail to give attendees the functional knowledge to interpret and explain all of them.
If you are interested in saving $$ and registering for the full 3-part series ($549), rather than just a single session.
Part 1 - Derivative Products and Their Usage
Part 2 - Interest Rate Swaps - A Primer
Part 3 - The LIBOR Story
Unique Financial Instruments 101: Derivative Products and Their Usage
Derivative products and their usage have been widespread in banking circles. Unfortunately, the terminology has not been so crystal clear. As a result, derivatives usage has become confusing. This financial webinar attempts to clear up the confusion by demystifying the entire derivative usage area and taking away the mystique surrounding the derivative area of practice.
Specifically, this financial training defines derivative financial instruments and:
- Identifies why different types of entities need derivatives
- Explains risk transfer
- Reviews the “liability sensitivity” of depository companies
- Explains the “Asset/Liability Management” process
- Distinguishes between derivatives used to speculate and derivatives used for hedging; and
- Establishes an audit approach to derivative usage
It discusses the following types of derivatives widely in use today:
- Interest Rate Swaps
- Forward rate agreements
- Mortgage-Backed Derivatives
- Inverse Floaters
This financial training identifies the typical derivatives (e.g. futures, forwards, options, swaps) and provides illustrations and how they are specifically used by various organizations. Emphasis is placed on the controls over and the documentation of derivative product activities. Particular attention is given to proper derivative accounting (trading, fair value hedging, cash flow hedging) and the required financial statement disclosures for financial instruments and related derivative products. “Real” examples are used to illustrate learning objectives.
Attendees will become familiar with the ever-increasing use of derivative products. Additionally, a sound understanding of the reasons for derivatives is covered.
All attendee organizations that currently use or are considering the use of derivatives should attend this valuable financial services webinar. For companies that “do not” use derivatives, this training will force attendees to ask “why not?”. In the past, derivatives were thought of as weapons of financial destruction with most banks saying they didn’t use them. They were thought to be dangerous; the banker simply didn’t have the expertise to use them. Now, when asked if a bank uses derivatives and they reply with a “no” response, the next question is “why not?”
Paul J. Sanchez, CPA, CBA, CFSA conducts a CPA practice in Port Washington, New York. He is also the owner of Professional Service Associates (PSA), a consulting and professional training and development business servicing corporate clients (auditors, controllers, etc.), CPA firms, professional associations and others. He was an assistant professor at Long Island University – C.W. Post Campus as well as an adjunct lecturer at City University of New York. Prior to starting PSA, he was the Vice President-Professional Development for the Audit Division of a regional bank and Director of Professional Practices and Vice President of a money-center bank, where he directed the professional practice development and training for internal auditors.
1.5 CPE Credits & 1.8 AAP Credits