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Complete Case details are given below :
Case Name : Banc One Corp.: Asset and Liability Management
Authors : Peter Tufano, Benjamin C. Esty
Discipline : Finance
Case Length : 29 pages
Solution sample availability : YES
Plagiarism : NO (100% Original work)
Description for case is given below :
Banc One's share price has been falling recently due to analyst and investor concern over the bank's heavy use of interest rate derivatives. Dick Lodge, chief investment officer in charge of the bank's investment and derivative portfolio, must recommend to the CEO a course of action to allay investors' fears and communicate to the market the reasons for Banc One's use of derivatives. The bank uses interest rate swaps to manage the sensitivity of its earnings to changes in interest rates and as attractive investment alternatives to conventional securities.
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