Interest Rate Risk Management
Interest Rate Risk Management Q&A with Dale Sheller
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During this episode, Larry chats with Dale Sheller with the Baker Group about why the Federal Reserve recently decided to not increase interest rates, the implications of the tightening cycle on margins, preparations of financial institutions for the end of the tightening cycle, the reasons for an inverted yield curve, regulators' responses to unrealized investment portfolio losses, and the benefits and structure of the bank term funding program in mitigating risk.

Interest Rate Risk Management Q&A with Dale Sheller

Here is a quick breakdown of what is covered during the podcast:

[1:12] The Fed skipped raising interest rates at the last meeting – why did they do that and are they done raising interest rates?
[2:24] Is the recent fast-tightening cycle good news for net interest margins?
[4:27] How fast does the cost of funds catch up to the yield on earning assets? Has it been faster in this cycle?
[5:27] How are financial institutions preparing for the Fed to end the tightening cycle?
[7:50] What do we have an inverted yield curve?
[9:42] How are regulators responding to unrealized losses on investment portfolios, and why?
[11:38] What are the advantages of the bank term funding program for financial institutions?
[14:37] Could the bank term funding program mitigate the risk of unrealized losses?
[16:05] Deposits increased dramatically over the pandemic, has that trend slowed down? Are financial institutions seeing most of these deposits as ‘hot money’ or core deposits?

After the podcast, be sure to check out Dale’s complimentary webinar, Interest Rate Risk Management Today.

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More About Our Guest

Dale Sheller is an Associate Partner in the Financial Strategies Group at The Baker Group. He joined the firm in 2015 after six years as a bank examiner with the FDIC. Dale holds a bachelor’s degree in finance and a master’s degree in business administration from Oklahoma State University.

He works with clients on investment portfolio strategies, interest rate risk management, liquidity risk management, and regulatory issues. Dale regularly speaks at educational seminars nationwide and serves as a faculty member for multiple banking schools.

Visit Dale's webinar page for his library of on-demand and upcoming webinars.