Porfolio analysis

Are you getting the most out of your analytical software? Let Paterson make sure you understand the power of the tools available to you as well as the risks and rewards of the various assets and liabilities both on and off the balance sheet. Interest rate and credit risk are the foundations of a prudently managed and profitably operated institution.

New assets and liabilities

Do you know the current market situation? Profit opportunities are available for all institutions from yield- and fee-based borrowing and lending. Interest rate and credit risks from these activities are well known and manageable. From commercial and mortgage loans, to real estate and consumer lending, prudent profit opportunities are available. In addition, strategies for money market arbitrage provide nearly risk-free income.

Hedging

In times of stress, all institutions must have in place a comprehensive plan to hedge agains market and regulatory forces. Whether inflation surges, or the Treasury increases bond sales, and even in the face of Federal Reserve action, all institutions must be able to temporarily protect the value and income of the institution from external forces.

Macroeconomic analysis

More than any other external force, macroeconomic trends are easily understood, and the consequences managed.

Business cycle analysis is well-known and understood, and all institutions can benefit from careful synchronization of borrowing and lending with major trends in macroeconomic variables.

At each segment of the business cycle, from trough to peak and back to trough, prudent management suggests alterations in portfolio risks to avoid damage and take advantage of opportunities.

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