Portfolio Management
Investment Portfolio Management is a service in which First National Capital Markets will act as your institution’s investment portfolio manager. Our team of financial and investment analysts will perform time-proven statistical analyses on your bank’s entire balance sheet. They will also actively manage your investment portfolio and recommend and implement appropriate changes to increase yield and lower risk.
The following briefly describes steps we would take:
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Our analysts will meet with you to understand your investment policy detailing your bank’s unique return objectives, liquidity needs, and risk constraints.
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On a monthly basis, we will gather your rate-sensitive assets and liabilities information from your loan, deposit, and other borrowing files. The investment file for your institution will be generated and delivered automatically from our internal bond accounting system.
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Using a sophisticated asset-liability system, our financial analysts will carefully study your overall balance sheet make-up and perform various sensitivity and scenario analyses. Some of the statistical studies performed will include duration analysis, GAP, VaR (Value at Risk), and economic value to assess your overall interest rate risk.
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With a full understanding of your current overall asset-liability mix, your investment portfolio policy, and the current and forecasted economic environment, our analysts will recommend appropriate changes to your investment portfolio as needed. We will continuously communicate our recommendations and forecasts with your bank’s management. Additionally, we are available to attend any of your institution’s asset-liability management and board of director meetings
First National Capital Markets is committed to helping your bank achieve its investment portfolio goals! With over 75 years of experience behind us, we are prepared to deliver professional, justifiable recommendations to you that will help you manage your entire bank’s interest rate risk.
