Independent Banker - December 2018 - 28

PORTFOLIO
Portfolio Management
By Jim Reber, ICBA Securities
Give and take
A
s we approach year-end, once again it's
time to go into the attic and reach not for
the holiday decorations (although there's nothing
wrong with that), but the bond management
archives. If there has been a theme of the " Portfolio
Management " columns in this magazine
this year, it's that community bankers have been
able to, or have had to, employ some strategies
they haven't been able to, or needed to, for the
better part of a decade.
Along with the holiday traditions that many
community banks observe and celebrate come
investment activities that naturally occur right
around year-end. This may include some minor,
garden-variety window dressing to demonstrate
ample stores of liquidity, but it could also be time
to execute a more ambitious, strategic repositioning
of the bond portfolio.
We'll review the reasons that community
28 Q ICBA Independent Banker Q December 2018
How to profit from buying and selling bonds simultaneously.
banks would consider such trades, and remind
the portfolio managers of the costs, benefi ts and
guidelines for such actions.
Season for the reason
It's timely to be thinking about a bond swap,
because banks' annual earning numbers are
coming into focus. By far the busiest month for
the simultaneous purchase and sale of bonds is
December, and the second busiest is January.
We'll go into the reasons for that shortly.
For a community bank to begin considering a
transaction, its management team is acting on at
least one of these four motives:
Q Cashing in gains: Banks that are falling
short of projected income goals may choose
to selectively dispose of a few bonds, at
gains, to achieve such goals. They also may
be projecting that gains will be smaller in the
Jim Reber, CPA,
CFA (jreber@
icbasecurities.com),
is president and CEO
of ICBA Securities,
ICBA's institutional,
fixed-income
broker-dealer for
community banks

Independent Banker - December 2018

Table of Contents for the Digital Edition of Independent Banker - December 2018

Table of Contents
Independent Banker - December 2018 - Intro
Independent Banker - December 2018 - Cover1
Independent Banker - December 2018 - Cover2
Independent Banker - December 2018 - Table of Contents
Independent Banker - December 2018 - 2
Independent Banker - December 2018 - 3
Independent Banker - December 2018 - 4
Independent Banker - December 2018 - 5
Independent Banker - December 2018 - 6
Independent Banker - December 2018 - 7
Independent Banker - December 2018 - 8
Independent Banker - December 2018 - 9
Independent Banker - December 2018 - 10
Independent Banker - December 2018 - 11
Independent Banker - December 2018 - 12
Independent Banker - December 2018 - 13
Independent Banker - December 2018 - 14
Independent Banker - December 2018 - 15
Independent Banker - December 2018 - 16
Independent Banker - December 2018 - 17
Independent Banker - December 2018 - 18
Independent Banker - December 2018 - 19
Independent Banker - December 2018 - 20
Independent Banker - December 2018 - 21
Independent Banker - December 2018 - 22
Independent Banker - December 2018 - 23
Independent Banker - December 2018 - 24
Independent Banker - December 2018 - 25
Independent Banker - December 2018 - 26
Independent Banker - December 2018 - 27
Independent Banker - December 2018 - 28
Independent Banker - December 2018 - 29
Independent Banker - December 2018 - 30
Independent Banker - December 2018 - 31
Independent Banker - December 2018 - 32
Independent Banker - December 2018 - 33
Independent Banker - December 2018 - 34
Independent Banker - December 2018 - 35
Independent Banker - December 2018 - 36
Independent Banker - December 2018 - 37
Independent Banker - December 2018 - 38
Independent Banker - December 2018 - 39
Independent Banker - December 2018 - 40
Independent Banker - December 2018 - 41
Independent Banker - December 2018 - 42
Independent Banker - December 2018 - 43
Independent Banker - December 2018 - 44
Independent Banker - December 2018 - 45
Independent Banker - December 2018 - 46
Independent Banker - December 2018 - 47
Independent Banker - December 2018 - 48
Independent Banker - December 2018 - 49
Independent Banker - December 2018 - 50
Independent Banker - December 2018 - 51
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Independent Banker - December 2018 - 53
Independent Banker - December 2018 - 54
Independent Banker - December 2018 - 55
Independent Banker - December 2018 - 56
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Independent Banker - December 2018 - 58
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Independent Banker - December 2018 - 60
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Independent Banker - December 2018 - 63
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Independent Banker - December 2018 - 69
Independent Banker - December 2018 - 70
Independent Banker - December 2018 - 71
Independent Banker - December 2018 - 72
Independent Banker - December 2018 - 73
Independent Banker - December 2018 - 74
Independent Banker - December 2018 - 75
Independent Banker - December 2018 - 76
Independent Banker - December 2018 - Cover3
Independent Banker - December 2018 - Cover4
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