Why Outsource Your ALM Reporting?
While the potential power of ALM is well known to most industry participants, it is a tool that is underutilized throughout the industry. Why is this so?
The answer to this question is that a tool this powerful requires a high level of industry-specific knowledge and experience, as well as adequate time and model-specific knowledge.
As a result, ALM is often underutilized by financial institutions because of lack of time and/or resources needed to properly operate it and accurately interpret the findings.
Why Choose Objective Advisors?
By partnering with Objective Advisors, you will be able to satisfy the regulatory requirements, while also educating your management team and Board of Directors as to what the key risk factors are for the institution and what the future is likely to look like in various interest rate environments.
Each of our clients is assigned to an experienced analyst who manages the entire modeling process, from the downloading of data extracted from the institution’s mainframe to the presentation of the formal report package.
We Use the Fiserv A/L Manager model, which is one of the most well respected ALM models in the industry, and is used by all sizes of financial institutions around the world, including some of the largest.
Each reporting period, we update assumptions pertaining to balance sheet growth assumptions, current offering rates, mortgage & auto prepayment speeds, and management's expectations regarding future PLL Expense, Fee Income & Operating Expenses.
Numerous Interest Rate Shock Scenarios
We conduct numerous interest rate shock analyses, including the standard +/- 300 basis points, as well as shocks of 400 & 500 bps and changes in the slope of the yield curve.
Thorough Review & Interpretation of Results
We conduct a thorough review of the modeling results and provide each client’s management team with a preview version of the results before finalizing the report package.
Comprehensive Report Package
Our reports are thorough, yet concise and easy to comprehend. They include an Executive Overview that is perfect for the Board, as well as more detailed reports for the management team. Charts and graphs, as well as written commentary, are provided to illustrate and explain the credit union’s risk profile.
So, the answers to "Why Outsource?" and "Why Objective Advisors?" are really one in the same . . . because we do ALM modeling the way you would do it internally if you had unlimited time & financial resources.
Let us take some of the burden off of you and your staff. Call us today to discuss how we can help!
Objective Advisors, Inc. is a Registered Investment Advisory firm that is regulated by the Securities & Exchange Commission.