CHICAGO –Kevin Chiappetta, president of Milwaukee-based QuantyPhi, presented two different sessions at the 2022 CUNA Investment Certification School: Fundamentals.
According to CUNA, during the three-day event attendees gain an understanding of investment portfolio management discipline as a process, not simply a function of purchasing and selling investments. They also develop a fundamental knowledge of investment return and risk measures, including application and advantages/disadvantages of each, and the mechanics of the trade, according to the trade association.
Chiappetta’s first presentation, “Understanding Key Principles & Financial Characteristics,” focused on key financial characteristics, the proper application, and common misapplications. He talked about yield, spread, weighted average life, time value of money, durations, option adjusted spread, and term structure of interest rates.
His second session titled, “Developing Risk/Return Requirements for the Investment Portfolio,” taught attendees how to show credit union boards and ALCO committees the role the investment portfolio plays as part of the balance sheet.
“These sessions are a pleasure to review,” Chiappetta said. “Helping credit unions understand the investment portfolio can be used in conjunction with the entire balance sheet, rather than looking at the portfolio as a stand-alone entity, can be eye opening. Combining that with unraveling the risk measurement process and how the risk measures work, and how they don’t work, always brings out some interesting conversations.”