Bank Advisory Services
Investment Management, Asset-Liability Management,
and Interest Rate Risk Analysis
As a Registered Investment Advisor catering, one of the focal points of our bank advisory services is full service portfolio management. From start to finish we have the tools and experience necessary to provide investment recommendations and security selection, conduct pre-purchase analysis, execute transactions, handle all settlement issues, and proactively monitor the portfolio over time. Most importantly, as a non-discretionary advisor, the client has the final say on all transactions, and we will never make any changes to the investment portfolio without first getting the approval of the client. What this unique approach allows us to do is handle all of the hassle and all of the time consuming analysis, while still keeping the client informed and in charge of the portfolio.
We are not a broker or dealer, so there is no conflict of interest, and we will never make any money from trading. In fact, part of our independent philosophy involves actively maintaining a network of over 75 different brokers and dealers that we may use to execute transactions. Our philosophy is to seek best execution for our clients and this alone can save our clients thousands of dollars.
Other investment services that we provide include full service bond accounting, pre- and post-purchase credit review of securities, bond swap reporting, portfolio analytics, competitive bid and offer pricing, investment policy advice, trade clearing, and more. For more information, please contact us.
In order to provide the best investment advice possible, decisions must be made both within the context of the current economic and market environment, as well as within the context of the institution’s balance sheet structure and risk profile. This very need is precisely why BPS Capital also advises on asset-liability issues as well. We believe to be truly effective in our portfolio management, a dual focus on asset-liability management is required.
Another important factor to consider is the ever growing environment of regulations. As new regulations are being placed upon banks, BPS Capital works hard to ensure that we provide all of the necessary tools, reports, and education to our clients that they need to both comply with regulations and satisfy any concerns of examiners.
Other asset-liability services that we provide include interest rate risk reporting, board education and ALCO committee education, ALCO policy advice, bank examination advice, and more. For more information, please contact us.
Interest Rate Risk Analysis
At BPS Capital, we believe that the composition of the entire balance sheet contributes greatly to both our portfolio management as well as our asset-liability management services. One of the primary tools that we utilize in this process is our proprietary Interest Rate Risk (IRR) report, which has been extremely well received by bank examiners. Right out of the box, our IRR report includes balance sheet analysis, earnings at risk analysis, static gap analysis, economic value of equity analysis, and liquidity and dependency. All of the calculations are based on instrument level data, not call report data, and the report includes parallel, non-parallel, ramped, and shocked rate scenarios. That’s nearly 50 different interest rate scenarios right out of the box, with the capability to run a limitless number of custom and vectored rate scenarios as well. Best of all, our IRR report is provided at no extra cost to our bank advisory and investment management clients. For more detailed information about our IRR model, head over to the IRR page, or contact us to receive a sample.