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Interest Rate Risk Management for Credit Unions

Stabilize Credit Union Margin with IR Hedging

Reduce interest rate risk and improve the safety and soundness of your credit union by adding hedging to your toolkit. Team up with Hedge Trackers for help managing your hedge portfolio—including accounting, reporting and on-going hedge effectiveness testing—and get support and education every step of the way.

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Use Derivatives to Hedge Interest Rate Risk

Align interest rate assets and liabilities, minimize balance sheet impact and reduce financial risk by using derivatives to hedge your credit union’s interest rate risk.

Get NCUA Approval

  • Hedge Trackers can work with your team to put together a derivatives policy, an accounting guide to support designations, a documentation package including effectiveness testing examples, and more so you can apply for NCUA approval—a requirement for some credit unions. Under the new rules, credit unions meeting certain thresholds no longer have to apply for derivatives authority.

Get Started with Derivatives

  • If you lack the bandwidth to handle the details or aren’t yet comfortable with derivatives, Hedge Trackers can help—and give you confidence in your strategy. Our team helps you model and value derivative instruments, prepare compliant journal entries, stay audit-ready and more.

  • Ready to Hedge?

    • Federal Home Loan Bank (FHLB) Loans
    • Member Deposits
    • Prepayable Assets

"From the minute we execute a derivative, I need to feel confident that the t’s are crossed and i’s are dotted in hedge documentation, effectiveness and disclosures. So, when auditors and the NCUA come to review, everything is squared away. Hedge Trackers is on top of it."

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How We Work
With Credit Unions

  • Derivative Accounting

    Accounting rules are more credit union-friendly than ever. Partner with our team of derivative accountants for help executing your IR hedge program.

  • Software

    Use CapellaIR—interest rate risk management software that supports the IR hedging journey—to track and manage derivatives that offset interest rate risk.

How Can We Help You?

Hedge Trackers has been helping credit unions navigate NCUA rules and implement hedge programs since the strategy was first available—and we continue today supporting the very large and the very small with their interest rate risk management.

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