DALLAS (3/24/11)--ALM First Financial Advisors, LLC, is offering a free webinar for credit unions interested in generating income by holding long-term mortgage loans. The webinar will be held at 10:30 a.m. CT Monday. “Credit unions are finding themselves in a quandary because spreads are tight and rates are likely to stay where they are for awhile,” said Emily Hollis, a partner with ALM First. “But by holding long-term mortgage loans, they can generate income and increase capital as their deposits increase.” Under the right circumstances, transferring risk to a third party through hedging can be an effective tool, Hollis added. But knowing the right strategy for specific situations is key. “Our hedging program is rooted on in-depth study of a financial institution’s balance sheet and identification of its inherent risk through net economic value analyses,” she said. “We use this information, as well as our expertise with derivative instruments, to establish the right hedging strategies, build effective hedge transactions, and achieve desired risk profiles for credit unions.” In 2002, ALM First received approval from the National Credit Union Administration to consult with client credit unions regarding the use of interest-rate risk hedge products. The firm’s derivatives pilot program was a first within the credit union community because it sets up trades directly between the credit union and reputable dealers through its current investment relations.