Loan Trading

Unlocking the Liquidity in Your Loan Portfolio

The loan portfolio is an often-overlooked source of liquidity at many financial institutions. First National Capital Markets can help you gain a better understanding of this core asset and its potential as a source of liquidity; liquidity to fund ongoing loan demand in residential, commercial, and consumer loans or to fund other bank initiatives or growth opportunities.

Often once a loan is originated and closed, the note is stored in the vault and it becomes lost in the balance sheet. We believe the loan portfolio should be treated just like the investment portfolio – subject to periodic review and analysis. Just like any other investment the financial institution makes, the loan portfolio has risks and rewards that change with the changing market environment and should be actively managed to mitigate those risks and to take advantage of market opportunities as they present themselves.

FNCM can help you gain a better understanding of your residential loan portfolio and its liquidity potential by providing you with a comprehensive analysis of your loan portfolio. The residential loan portfolio analysis is provided to FNCM clients free of charge.

The analysis includes:

Discussion of current secondary market conditions affecting mortgage loans
Liquidity analysis
Current market pricing of your portfolio
Measurement of the portfolio's interest rate risk in various rate scenarios
A valuation of the servicing portfolio
Measurement of prepayment risk
Recommendation of buy/sell or hold strategies to better manage your institutions investment in loans