Interest rate risk analysis and consultation to provide credit union management with improved expertise in managing balance sheet risk and structure

The Comprehensive A/LM Service produces a clear and concise report package that monitors financial performance and measures earnings fluctuations under a broad range of plausible interest-rate scenarios. Southwest Corporate Investment Services utilizes the BancWare® Model, a sophisticated and robust asset/liability management system.

• Sophisticated data management/download that provides account-by-account modeling
• Extensive validation of all data – ensures integrity of data input
• Ability to define and observe the behavior of any financial instrument
• Embedded prepayment options captured based on collateral type
• Non-term share valuation utilizing regression analysis
• Calculation of an option adjusted spread (OAS)
• Lattice-based valuation using the Hull and White term structure model

Comprehensive A/LM Analysis includes:

• Quarterly assessment of future earnings, capital adequacy, and interest-rate risk exposure
• Measurement of the credit union’s interest-rate risk including: income simulation, net economic value analysis (NEV), and gap analysis
• Income simulation over a two year horizon and NEV analyses, both run under seven interest-rate shock scenarios
• Reports ready for presentation to the credit union’s ALCO or Board of Directors
• Presentation by SCIS A/LM specialist of the first analysis to verify all assumptions and to ensure results are understood
• “What-if” analyses performed to confirm business plans and/or test the impact of new products

A/LM Consulting includes:

• Personal attention and hands-on guidance from experienced A/LM specialists
• Quarterly risk assessment, including interest-rate risk measurement, in-depth performance analysis and commentary
• Assistance with the development of A/LM policies
• A/LM education and consulting

  Comprehensive A/LM analysis is available as a stand-alone service or as part of the Investment Advisory Service. Contact a National Account Executive at 800.301.6196 for more information.

  A/LM Information Links:
  

• Free A/LM Training
• One Credit Union's Experience
• Comprehensive A/LM Service
• Standard A/LM Service
• Top 10 Reasons to Use a Comprehensive A/LM Service
• Measurement Tools Used to Assess Risk
• Ease the Squeeze on Your Margins
• What-If Scenarios that Create Confidence
• A/LM White Papers (redirects to Southwest Corporate Investment Services website)
• Email for more information