Business People attending event
All Events
Community Events
Member Events
Webinar: Managing Cost of Funds, NIM and Earnings Using Marginal Cost Analysis


Join FHLBank Boston for a Free Webinar

Managing Cost of Funds, NIM and Earnings Using Marginal Cost Analysis

How important is it today to manage funding costs? While the Federal Reserve has raised short-term rates by 200 basis points since December 2015 and 10-year Treasury yields have risen by 100 basis points, median deposit costs have only risen by 11 basis points. However, with liquidity now squeezed, we are seeing a drumbeat of headlines about pressure on deposit rates, deposit repricing "betas" and margin compression. Managing funding costs while minimizing impact on deposit repricing betas is critical to maintaining margins. Please join us for an engaging discussion focused on analyzing and managing marginal cost of funds and protecting earnings in this challenging rate and funding environment.

You will learn how to:

  • Incorporate marginal cost of funds analysis when considering new deposit products and deposit specials to minimize your cost of funds and impact on beta
  • Use marginal cost of funds analysis to determine when to raise deposit rates broadly and when to make exceptions for specific customers
  • Estimate the true cost of retaining or obtaining customers "at the margin" to determine whether the customer value is sufficient for its impact on costs and betas
Ray Chandonnet of will lead the webinar. He'll demonstrate the use of FHLBank Boston advances as a benchmark to help manage deposit costs and show you a very simple funding strategy in which marginal cost of funds on advances decrease over time, shielding your institution from rising interest rates.
Attendance is Limited
Thursday, November 15, 2018
2:00 p.m. - 2:30 p.m.
Questions? Please contact Stacy McCarthy.

Raymond E. Chandonnet
Founder/Managing Principal

A longtime bank strategist, Ray is the founder and managing principal of, an advisory firm based in Summit, N.J., that provides balance sheet and earnings strategy consulting and training to financial institutions. Ray has worked with hundreds of banks and credit unions on financial strategies over his 30-year banking career and headed balance sheet strategy efforts at Wall Street firms like JPMorgan. He was part FHLBank Boston in the 1990s.