As Greg will explain, we’ve been evaluating the realities and unintended outcomes of that strategy during this year’s increasingly volatile environment. With the benefit of the review and analysis he will recap, we obviously concluded that it wasn’t beneficial to continue to carry the increasingly uncontrollable and very unpredictable risk associated with the portion of the MBS book we sold. That while still additive financially to our results and outcomes, those risks have become value-dilutive to the increasingly positive results and outcomes from a core business that’s performing better today than ever. So, in effect, we’ve significantly scaled back that bridging initiative now, rather than let it run its full course over the next couple years.Do our actions reduce short-term earnings for the next couple of years? Sure, but that’s minimized by a combination of, one, the additional downside exposure that we believe would have materialized had we retained the entire portfolio, as well as, two, the benefits of the now improved asset sensitivity of the balance sheet.
First Niagara Financial's CEO Discusses Securities Portfolio Repositioning Conference Call (Transcript)
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts