Education · concepts for balance-sheet professionals
Duration & Convexity
How bond prices respond to rate moves — the first- and second-order sensitivities every ALM desk watches.
Asset-Liability Management (ALM)
Managing the balance sheet's exposure to interest rates, liquidity, and the shape of the curve.
Funds Transfer Pricing (FTP)
The internal rate that moves interest-rate risk off the business lines and into Treasury.
The Yield Curve & Rate Spreads
What the slope and shape of the curve signal — and why 2s10s and 10s3m matter.
Interest-Rate Swaps & Hedging
Using swaps to reshape balance-sheet rate exposure without trading the underlying assets.
Net Interest Margin & Deposit Beta
Where the money is made — and how fast deposit costs chase the Fed.
Caps & Floors as Banking Hedges
Buying interest-rate insurance — protecting margin against rates going too high or too low.
Key Rate Duration
Pinpointing where on the curve your interest-rate risk actually lives.
Positive & Negative Convexity
Whether rate moves work for you or against you — and why mortgages are the classic trap.
Credit Spreads
The extra yield for taking credit risk — and what it says about the cycle.
Asset-Sensitive vs. Liability-Sensitive
The single question that decides whether rising rates help or hurt your margin.