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| Westerbeck Risk Management (WRM) can be of help in managing the interest rate risk of your bank or financial institution in five general areas 1) Measuring interest rate risk properly is the first step to being able to manage the risk. 2) Establishing an interest rate risk position for the bank that: 1) locks in product margins, 2) trades off higher normal earnings levels with market value risk and earnings volatility. 3) Managing the negative convexity of your balance sheet. Negative convexity is the major interest rate risk in many institutions. Learn how to manage negative convexity without the excessive cost of options. 4) Pricing and managing Mortgage Servicing Rights (MSR). Mortgage Servicing Rights (MSR) are a high-yield but dangerous asset. Learn how to manage their various risks including basis risk, yield curve exposure and negative convexity. 5) Establishing a derivatives program and advising on the accounting processes necessary to demonstrate that your derivatives are effective hedges and warrant hedge accounting. Managing the interest rate risk of your institution may likely require getting hedge accounting on derivative hedges. Contact Information
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Send mail to: kent@westerbeckriskmanagement.com with questions or comments about this web site. |
