The Art of the Investment Portfolio
To understand and limit future exposure to risk.
Many community bank directors learned during 2007-2009 that some securities in their investment portfolios did not perform as expected. In fact, some went into default, some did not pay interest, and many markets for the securities collapsed.
The focus of this book is to instill the traditional banking and investment concepts that historically have been, and always will be, the foundation and the strength of our financial system.
Experiences from tumultuous times should be used to develop an understanding and a comfort level throughout the boardroom on how to move forward in the wake of portfolio impairment.
Highlights include:
- What have we learned to better position our investment portfolio going forward?
- What do bank directors need to know and what responsibility do they ultimately have?
- How to evaluate and limit future exposure to risk in your investment portfolio.
- Secrets on how to effectively use duration in understanding, monitoring, and setting policy in your investment portfolio.
- How understanding the economy's impact on the yield curve helps the board and senior management set the bank's plan for the immediate future.
- How to alter your investment policy to be in line with the risk parameters of your institution.