Financial institutions must maintain a healthy balance sheet to ensure liquidity, support regulatory compliance, and enhance their ability to absorb financial shocks. Scott Hildenbrand, Managing Director and Head of Depositories for Fixed Income at Piper Sandler, explains key strategies that financial institutions use to optimize their balance sheets, focusing on loss trades and restructuring, as well as how interest rate fluctuations impact balance sheet health. He also addresses considerations for assessing restructurings, the strategic use of proceeds and optimal timing for transactions.