FASB’s recently issued ASU 2017-12 simplifies hedge accounting and provides opportunities for new strategies. In this session, we will discuss hedges common to community banks that can be easily implemented and how to take advantage of the improvements brought about by the ASU. If you are new to hedging or find it too complex, this session is for you.
• Understand the differences in hedging techniques
• Understand the different hedge documentation strategies and which have the least on-going compliance efforts.
• Learn the key concepts of the new ASU including: contractually specified rates, partial term, last-of-layer method, the benchmark component of the contractual coupon, and qualitative effectiveness assessments
• Understand hedging pitfalls to avoid