Financial Strategies

Northland provides expert analysis for financial institution clients as they manage fixed income portfolio risk and identify opportunities for enhancing returns.

Our specialists can help evaluate portfolio performance in various market environments, including “what-if” scenarios on interest rate changes, and the effect of proposed purchases/sales. We also provide an extensive selection of customizable reports which can identify some of the portfolio’s current risk characteristics, project future cash flows, or show how the institution is performing relative to others within the peer group.

treasury-fraud-web_aug-2024 - 1

Asset / Liability Management

Northland offers asset / liability management reports to perform mandated regulatory analyses and reporting of interest rate risk for both income-at-risk and value-at-risk metrics. The reports also can show the impact of numerous interest-rate scenarios and strategies on the entire balance sheet and income statement.

Our tools can strengthen your budgeting and planning with liquidity analysis, capital projections, and income forecasts. Concise summaries with effective graphic presentations can assist in presentations to the Board of Directors when reviewing the overall position and risks of your institution.

Connect with an Expert

Bond Analytics & Strategies

Our specialists review portfolio fundamental characteristics and risk analytics, including sector distribution, ratings, call features, fixed versus floating rates, effective duration, convexity, book and market values, and unrealized gains/losses. We analyze book yield runoff to anticipate changes to book income from the bond portfolio, and prospective bond swaps and overall portfolio strategy “what-ifs” scenarios.

The reporting created incorporates unique characteristics of municipal bonds into interest rate risk analysis, such as “discount taxing” and its effect on municipal bond price movement for any given interest rate change. It also projects future portfolio cash flows in varying future interest rate scenarios. This makes it easier to communicate key information to senior management and/or the Board of Directors with easy-to-read summary data, charts, and graphs.

Connect with an Expert
treasury-fraud-web_aug-2024 - 1

Municipal Bond Credit Support

Northland can assist you with tailoring your credit review process — in order to make well-informed decisions and to create appropriate documentation for regulators.

We provide an initial credit summary for municipal bonds at the time of purchase and obtain updates on securities requiring more thorough review on an ongoing basis. We connect you to resources you need and can provide expertise in evaluating and understanding issuer financials and credit fundamentals.

Connect with an Expert

Portfolio Accounting

We utilize a portfolio accounting system which offers a robust collection of services, including accurate reporting of principal accretion/amortization and security interest accrual and payments in conformity with Generally Accepted Accounting Principles (GAAP).

It provides necessary information on the financial terms of fixed-income securities as related to principal and interest payments, coupon rates, rate resets, call dates, MBS and CMO factors, CPRs and PSAs, and maturities. We can provide a substantial selection of customizable reports, allowing easy communication and tracking of interest accrual, cash flow reconciliation, general ledger details, unrealized gain/loss, and other important data.

Connect with an Expert
Stack of files on his desk