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Investor Presentaiton

Asset and Liability Management Policies Hedging of interest rate and currency risk To immunize AFL from undesired exposure to changes in interest and currency rates. • Hedging essentially with swaps. Low liquidity risk ♥ Conservative Liquidity Buffer corresponding to 12 months net cash requirement invested in liquid and essentially ECB eligible assets. AFL's loan portfolio is eligible as collateral to ECB refinancing. Limited transformation with maximum 1-year gap objective between the average life maturity of assets and the average life maturity of liabilities. Conservative investment policy ♥ Securities are at least rated A- and issued by Supranational Institutions, Sovereigns and government related entities from the European Economic Area, North America and other internally approved countries 70% minimum of high-quality liquid assets, or HQLA. 18 CAFL Lo bonque des collectivités
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