7 Class Hours

Instructor: Chris Nelson

The investment portfolio plays an important role in managing the bank balance sheet.  An investor faces a number of choices and decisions as they develop an investment strategy, analyze securities and build the portfolio.  In addition, it is important to be able to explain the decision-making process to bank management, boards, auditors and regulators.

In this series of classes, we will examine the characteristics and risks of different fixed income securities used by community bankers.  Additionally, we will explore how to construct an investment portfolio that contributes to the optimization of an institution’s risk/reward profile.

Learning Objectives

The student will be able to:

  • Identify the fundamental characteristics of fixed income securities, including:
  • Government bonds
  • Residential and commercial mortgage securities
  • Collateralized mortgage obligations
  • Municipal bonds
  • SBA pools
  • Analyze the underlying benefits and risks of certain fixed income security types
  • Explain how certain fixed income securities fit within an institution’s investment strategy
  • Utilize the investment portfolio to mitigate an institution’s risk exposures
  • Utilize the investment portfolio to contribute to an institution’s financial performance

Annual School Session

Second/Third Year, Second Week Elective Course

Financial Management Track