Asset/Liability Management

Manage your risk.

Raymond James’ Asset/Liability Management Services provides clients with a robust, dynamic and comprehensive solution for measuring, monitoring and managing risk. The service leverages the technology of a cutting-edge ALM model, employing the institution’s core account data and custom behavioral assumptions. The analytics and model outputs meet or exceed regulatory requirements and provide management with a powerful tool to aid in strategic decision making.

Reporting Details

• Earnings, economic value, liquidity, and economic capital at risk analysis
• Eleven instantaneous, parallel shock scenarios and five ramped, non-parallel scenarios
• Executive, Board and ALCO summary reports to aid in strategic decision-making
• Detail reports incorporating account-level analysis and performance outputs
• Liquidity analysis to support cash flow stress-testing and contingency funding planning
• Seven-year simulation horizon modeled on a static and/or dynamic basis

Modeling Details

• Securities modeled by regulator-recognized eFolio® system
• Loans modeled on a line-item basis for all contractual elements such as floors, caps, re-pricing characteristics, amortization and balloon payments
• Deposits and borrowings modeled on an account-level basis, accounting for any optionality
• Custom prepay, decay and beta assumptions

Consulting Services

• Model assumptions consulting
• “What If?” modeling to support strategic decision making:
  • Growth, runoff and new product scenarios
  • Prepayment and deposit behavior scenarios
  • Bond portfolio, loan, funding, capital and hedge strategy scenarios
• Model back-testing
• Board/ALCO meeting consultation and on-site visits
• Asset/liability continuing education presentations
• Actionable strategy and product solutions
• Policy review and update
• Regulatory exam preparation

Investing involves risk and you may incur a profit or loss regardless of strategy selected.