Fundamental aspect of Portfolio of Securities

Fundamental aspect of Portfolio of Securities

The fundamental aspect of Portfolio of Securities

Over the last several years, bank investment portfolio management has become increasingly more important — and considerably more challenging. Given the current environment, investment portfolios as a percentage of total assets, have grown. Good credits/loans have been far more elusive – an effect with roots that reach back to the financial crisis. A portfolio investment is a hands-off or passive investment of securities in a portfolio, and it is made with the expectation of earning a return. In addition, the need to manage a portfolio with broader Assets /Liabilities Management (ALM) objectives in mind is always essential.

Adding to this, regulatory capital requirements and dramatically increased regulatory scrutiny have led to more conservatism in bank portfolios — including increased attention to enterprise risk management. The result is that the returns generated from bank investment portfolios are more material to banks non-interest income, and banks need to get more out of the investments, not in “safe” instruments, such as Treasuries. Throw in the current low-interest rate environment and a likely imminent rise in rates, and success becomes ever more difficult. Portfolio investments can width a wide range of asset classes such as stocks, government bonds, corporate bonds, Treasury bills, real estate investment trusts

In addition to a quick overview of portfolio management, this program will provide an understanding and analysis of specific investment instruments and the current fixed income/debt capital markets, as well as recent developments in the/industry, including regulatory changes. Last, but certainly not least, you will gain a wealth of ideas for optimizing your portfolio structure and returns (e.g., maximizing risk-adjusted returns).

  • Understand the influence the Treasury and swap curves have on fixed income markets
  • Identify and understand the essential, elements of bank investment portfolio management.
  • Learn how to quantify risk using duration and convexity Metrics.
  • Connect the investment portfolio to IRR management.
  • Formulate/articulate an investment policy that meets your bank’s strategic goals and risk appetite.
  • Identify and learn from the common themes of high performing portfolios.
  • Understand how regulations and accounting standards impact investment portfolio management.
  • Gain a historical view of municipal credit to inform your understanding of its role in today’s market and your portfolio
  • Review analytical tools commonly used on Bloomberg.
  • Review successful strategies and learn how they can be used to improve your portfolio’s risk-adjusted returns.