Managing Interest Rate Risk
Course Length: 8 weeks
AIB Credit:  2
Price:  $765 (plus S&H of $12.50)

Course Description:  This course provides participants with the tools to measure and manage their bank's interest rate risk

Audience:  Managing Interest Rate Risk is a rigorous course designed for individuals involved in asset liability management or line managers making pricing, investment, or funding decisions that impact interest rate risk.

Learning Objectives:  After successfully completing this program, you will be able to:

• Understand the mechanics of valuing cash flows including duration and price sensitivity
• Identify the determinants of the overall level of interest rates
• Use static GAP analysis to measure interest rate risk
• Use duration gap to measure interest rate risk
• Assess the impact on interest rate risk of various pricing, investment, and funding decisions
• Use a range of derivatives to manage interest rate risk including futures, forwards, interest rate swaps, caps, floors, and collars
• Apply all of these concepts to the management of interest rate risk in their own institution

Textbook:  Bank Management, 7th Edition, by Timothy W. Koch and S. Scott MacDonald, 2009, Thomson Learning, is the required textbook and will be provided to participants.  However, if you already have a copy of the textbook, you need not request another one.

Prerequisites:  Participants should be familiar with the characteristics of financial instruments that appear on bank balance sheets.

Required Software:  Microsoft Excel