This is rather long, but I am trying make relevant points to why you should use Tom’s THC model. I did use it so what I say is not second-hand information. I have always found him and his associates to be dependable and knowledgeable in their work. When it comes to ALM modeling you should have clarity and consciousness as to what it is. In its basic form you will recognize that as your assets reprice, and your liabilities reprice they will have an impact on your net income (Good, bad, or slight). I like slight because if you are happy with your NIM and you can get the repricing to slight changes you will be ahead of the game. You may be able to get your Assets to reprice faster than your liabilities in a rising rate environment then your NIM will increase but there is always the uh oh moment when things change and you watch the market turn on you and NIM heads the other way. It unfortunately is never that easy when you have parts moving every direction and repricing scenarios changing. For instance, many financial institutions have been happy to move deposits into MMDA and Now accounts paying extremely low interest rates and you are lending money at much higher rates. It is interesting that the highest paying rates banks are those that have large Credit Card portfolios where you have that ability to move rates on both sides overnight or you have an extremely large NIM that you have room for incremental changes that will not do much damage to your NIM. However, and this is a big however if you are a community bank with large slow-moving rate adjustments on the asset side and large chunks of your deposits in MMDA and Now accounts those changes to those accounts can be quite dangerous to your Bank, S&L, or Credit Union NIM. THC can give you alternatives that will hedge the impact to your NIM. Here is where THC comes in. The THC model is quite dynamic in detail of your banks entire balance sheet. I have personally used many models from Sendero to Investment firms that if you look closely will be directed to their primary investment offerings and other that claim certain characteristics which I was never sure of. The THC model has undergone years of modification covering all aspects of the balance sheet. It is simply the most dynamic model I have ever seen. Yes, you need to know your P’s and Q’s here, but you should know them anyway. It will help you understand the impact of your decision making. We have settled into an almost pre-RegQ rate environment where your deposit side has been set at a minimum rate level because it is just about as low as it can go, and the asset side is mostly by market forces both in investments and lending. Lending is set by competitive factors. Everyone is happy with making money particularly after the Real Estate issues. The larger banks can use the non-interest income because of sheer volume to offset their loan pricing efforts (below market) along with rate swaps recommended by their models to compensate.

Thomas Ho and his team work in a professional manor to provide a great product with terrific support. I would recommend Thomas Ho Financial Engineering to anyone looking for a competitive advantage in the markets.

This is rather long, but I am trying make relevant points to why you should use Tom’s THC model. I did use it so what I say is not second-hand information. I have always found him and his associates to be dependable and knowledgeable in their work. When it comes to ALM modeling you should have clarity and consciousness as to what it is. In its basic form you will recognize that as your assets reprice, and your liabilities reprice they will have an impact on your net income (Good, bad, or slight). I like slight because if you are happy with your NIM and you can get the repricing to slight changes you will be ahead of the game. You may be able to get your Assets to reprice faster than your liabilities in a rising rate environment then your NIM will increase but there is always the uh oh moment when things change and you watch the market turn on you and NIM heads the other way. It unfortunately is never that easy when you have parts moving every direction and repricing scenarios changing. For instance, many financial institutions have been happy to move deposits into MMDA and Now accounts paying extremely low interest rates and you are lending money at much higher rates. It is interesting that the highest paying rates banks are those that have large Credit Card portfolios where you have that ability to move rates on both sides overnight or you have an extremely large NIM that you have room for incremental changes that will not do much damage to your NIM. However, and this is a big however if you are a community bank with large slow-moving rate adjustments on the asset side and large chunks of your deposits in MMDA and Now accounts those changes to those accounts can be quite dangerous to your Bank, S&L, or Credit Union NIM. THC can give you alternatives that will hedge the impact to your NIM. Here is where THC comes in. The THC model is quite dynamic in detail of your banks entire balance sheet. I have personally used many models from Sendero to Investment firms that if you look closely will be directed to their primary investment offerings and other that claim certain characteristics which I was never sure of. The THC model has undergone years of modification covering all aspects of the balance sheet. It is simply the most dynamic model I have ever seen. Yes, you need to know your P’s and Q’s here, but you should know them anyway. It will help you understand the impact of your decision making. We have settled into an almost pre-RegQ rate environment where your deposit side has been set at a minimum rate level because it is just about as low as it can go, and the asset side is mostly by market forces both in investments and lending. Lending is set by competitive factors. Everyone is happy with making money particularly after the Real Estate issues. The larger banks can use the non-interest income because of sheer volume to offset their loan pricing efforts (below market) along with rate swaps recommended by their models to compensate.

Thomas Ho and his team work in a professional manor to provide a great product with terrific support. I would recommend Thomas Ho Financial Engineering to anyone looking for a competitive advantage in the markets.

This is rather long, but I am trying make relevant points to why you should use Tom’s THC model. I did use it so what I say is not second-hand information. I have always found him and his associates to be dependable and knowledgeable in their work. When it comes to ALM modeling you should have clarity and consciousness as to what it is. In its basic form you will recognize that as your assets reprice, and your liabilities reprice they will have an impact on your net income (Good, bad, or slight). I like slight because if you are happy with your NIM and you can get the repricing to slight changes you will be ahead of the game. You may be able to get your Assets to reprice faster than your liabilities in a rising rate environment then your NIM will increase but there is always the uh oh moment when things change and you watch the market turn on you and NIM heads the other way. It unfortunately is never that easy when you have parts moving every direction and repricing scenarios changing. For instance, many financial institutions have been happy to move deposits into MMDA and Now accounts paying extremely low interest rates and you are lending money at much higher rates. It is interesting that the highest paying rates banks are those that have large Credit Card portfolios where you have that ability to move rates on both sides overnight or you have an extremely large NIM that you have room for incremental changes that will not do much damage to your NIM. However, and this is a big however if you are a community bank with large slow-moving rate adjustments on the asset side and large chunks of your deposits in MMDA and Now accounts those changes to those accounts can be quite dangerous to your Bank, S&L, or Credit Union NIM. THC can give you alternatives that will hedge the impact to your NIM. Here is where THC comes in. The THC model is quite dynamic in detail of your banks entire balance sheet. I have personally used many models from Sendero to Investment firms that if you look closely will be directed to their primary investment offerings and other that claim certain characteristics which I was never sure of. The THC model has undergone years of modification covering all aspects of the balance sheet. It is simply the most dynamic model I have ever seen. Yes, you need to know your P’s and Q’s here, but you should know them anyway. It will help you understand the impact of your decision making. We have settled into an almost pre-RegQ rate environment where your deposit side has been set at a minimum rate level because it is just about as low as it can go, and the asset side is mostly by market forces both in investments and lending. Lending is set by competitive factors. Everyone is happy with making money particularly after the Real Estate issues. The larger banks can use the non-interest income because of sheer volume to offset their loan pricing efforts (below market) along with rate swaps recommended by their models to compensate.

Thomas Ho and his team work in a professional manor to provide a great product with terrific support. I would recommend Thomas Ho Financial Engineering to anyone looking for a competitive advantage in the markets.