Make strategic decisions on future income, market value and risk

Transcription

1 Make strategic decisions on future income, market value and risk PolyPaths Asset Liability Management (ALM) integrates accounting and income simulation with market value economics and risk. It brings the same robust analytics that drive PolyPaths Trading & Risk Management solution to the strategic challenges of managing a balance sheet, with an emphasis on modeling, transparency, flexibility, and efficiency. By bridging the gap between risk economics and accounting, PolyPaths ALM revolutionizes the calculation and reporting of assets and liabilities to improve risk measurement and decision making. PolyPaths ALM puts income simulation in the hands of the decision makers across the corporation, in a division or unit, or at an individual level. Business users can change any element accounting, products, funding, hedging, balance sheet targets, cash management, risk targets and see the results in just minutes. It offers a robust set of features and capabilities including: Real-Time Accounting All accounting treatments are elective and visible on one screen. Users can change accounting elections on the fly, calculate forward income, market values and risk, and see reports in just minutes for the full bank simulation. We switched to PolyPaths based on their strong ability to match market values, produce reliable risk measures, and their great customer focus and support. We looked at the other systems we identified that could produce valuation and risk measures for a complex set of financial instruments and PolyPaths provided the best tradeoffs between: coverage, fidelity to capital market practices, actual experience on the street, price, database support, and client support. No other vendor we looked at matched all these very important dimensions as well as PolyPaths. Jim Zaikoski Market Risk Officer Federal Home Loan Bank of Seattle Flexible Architecture PolyPaths ALM uses a familiar Excel-based interface so that anyone can run income simulations. And it leverages the same analytics in PolyPaths Trading & Risk Management for instrument calculations and scenario analysis. Like Trading & Risk Management, ALM can also leverage Distributed Processing and an Enterprise database for greater speed and scalability. Comprehensive Reporting PolyPaths ALM features comprehensive and intuitive reporting capabilities including: = 40 standard reports for Balance Sheet, Market Value, Book Income, Cash Flows and Risk (Duration, Convexity, Volatility) = 40 reports for FAS hedge relationships = 40 transaction reports on funding, hedges and user-defined relationships = 15 performance ratio reports = Click from the balance sheet all the way to instrument level. Users can also see a balance sheet strategy across multiple scenarios side by side as well as multiple balance sheet strategies for a single scenario side by side.

2 Fast Simulation Run Times ALM separates instrument-level calculations from simulation calculations for faster run times. ALM runs the accounting, aggregation and reporting in minutes including new product, funding, hedging, cash management and risk targeting. Rigorous Quality Control ALM includes a self-validating Report Checker tool that tests consistency on all instruments and reports and identifies any data and modeling errors. Global Model Settings provides easy side-byside viewing of portfolio files for consistency. ALM also includes sophisticated tools to validate version changes and easy viewing of transaction reports to reconcile any process, account or instrument.

3 Licensing Options Like PolyPaths Trading & Risk Management, ALM can be licensed according to your specific user, processing and data management needs: POLYPATHS DESKTOP FOR ALM WITH DISTRIBUTED PROCESSING Features interactive, Excel-based screens for income simulation providing the same analytics and models used in PolyPaths Trading & Risk Management products. It also incorporates computational scale and speed for utilizing multiple processors. POLYPATHS ENTERPRISE FOR ALM Adds data management capabilities to directly feed positions into ALM. It uses one or more databases including SQL Server and Oracle. ALM Databases are updated in version changes through simple script within its user authentication application and databases are forward and backward compatible.

4 PolyPaths Distributed Processing for ALM This version features interactive, Excel-based screens for income simulation providing the same analytics and models used in PolyPaths Trading & Risk Management solution. It also incorporates computational scale and speed for utilizing multiple processors. This enables users to analyze large portfolios with complex financial instruments within their required time frame. ALM with Distributed Processing is designed for simple installation and minimal maintenance. The Admin Web Interface allows live management of the calculation grid. The Administrator can manage individual users, sessions, jobs and servers as well as implement policies on job priority limits, authentication, grid segmentation, lockout periods and more. Distributed Processing provides a number of important features and user benefits: Scalability Its robust architecture allows Distributed Processing to scale with the size of your income portfolio. Whether you re working with 50 calculators or 500, PolyPaths ALM provides stable and exceptional throughput. High Performance Distributed Processing for ALM has extremely low overhead and latency to keep the calculators running at full capacity. This provides you with all the valuations you need right when you need them. Fail-Safe Architecture From network downtime to machine failure, PolyPaths Distributed Processing identifies and recovers automatically from any infrastructure breakdowns. Manageability A web-based control panel allows monitoring and control of the grid from anywhere at any time. Distributed Processing quickly alerts users to any issues and provides the tools needed to resolve them.

5 PolyPaths Enterprise for ALM PolyPaths Enterprise for ALM leverages the same computational scalability provided by PolyPaths Distributed Processing and adds robust data management capabilities to directly feed positions into ALM. It uses one or more databases including SQL Server and Oracle. ALM Databases are updated in version changes through a simple script within its user authentication application and databases are forward and backward compatible. Together, these features provide for a number of important benefits: = Hierarchical account organization = Fast report dissemination via an easy-to-use web-based interface = Strong user management and access control = An audit trail which tracks any changes made = A robust batch engine that monitors and coordinates various steps in the process = Intelligent exception handling capabilities to identify, report and in some cases, correct errors, without interrupting the calculation process = Comparisons between any two portfolios same portfolios by date, two different portfolios for the same time period, or investment vs. index = Time series analysis Database Products Supported: - Microsoft SQL Server 2000 and newer - Oracle Version 8i and newer

6 A Complete Solution for Fixed Income Analytics PolyPaths Enterprise for ALM leverages the same computational scalability provided by PolyPaths Distributed Processing and adds robust data management capabilities to directly feed positions into ALM. It uses one or more databases including SQL Server and Oracle. ALM Databases are updated in version changes through a simple script within its user authentication application and databases are forward and backward compatible. Together, these features provide for a number of important benefits: A Common Platform PolyPaths provides a common platform for both Asset Liability Management and Trading & Risk Management. This integrated approach brings the same front office analytics that drive portfolio and risk management to the accounting challenges of managing a balance sheet. The solutions are very flexible and applicable for analyzing everything from a single bond to an entire financial organization. Industry-Leading Partners PolyPaths solutions integrate directly with the leading quality financial data and risk modeling providers in the industry including Intex Solutions, Andrew Davidson & Co and LPS Applied Analytics. Attentive and Personal Customer Support PolyPaths supports its clients aggressively with the industry s most responsive and complete customer support. We encourage customer inquiries and feedback. User training is frequent and effective live in person or via web conference. We also stay in close contact with customers - continuously monitoring their feedback on evolving industry trends in fixed income analytics and income simulation and incorporating it into our products. PolyPaths support is best in class. The support staff is very knowledgeable and always willing to help. PolyPaths clearly makes it a priority. Trading Desk Manager Home Mortgage Department US Bank For more information on PolyPaths Asset Liability Management, or to set up a demonstration, sales@polypaths.com or call PolyPaths was founded in 1996 to create a versatile, easy-to-use, fixed income analytics solution with uncompromising analytical rigor. Today, the company is the market leader in advanced solutions for fixed income analytics. Its platform leverages its founders vast experience in high volume, sell-side systems and combines the modeling rigor and user control of a single sector trader with the universality of a general portfolio manager. The resulting system meets the diverse needs of multiple users in the front and mid-office of financial organizations including traders, hedge fund managers, portfolio managers, risk managers, research analysts and asset liability managers.