Asset and Liability Management
What it is and what it can do for your business?
ALM takes the uses and sources of cash and implements an optimization plan. The effects are first felt in the balance sheet, then on returns. The first goal is to match liquidity with liabilities, then to increase profit margins. After a few months, there should be improvements in solvency and a positive effect on returns.
Who is it for?
Banking
Real estate development
Infrastructure
Industrial production
Agriculture
Retail
Untapped sources of value can be found and unlocked. Here are some of the projects we have worked on alongside dedicated teams within the client’s structure:
Optimize timing of imports by implementing a less conservative schedule in sync with the business cycle.
Implement working capital optimization policies to free up capital and pay dividends.
Measure the financial impacts of market risk and implement policies to offset adverse moves, while keeping an eye on capital requirements and opportunity costs.
Ground up structure of the treasury department for a regional bank, including asset and liability management tools, investment policies, internal transfer pricing.
Short term investment strategies for highly volatile levels of cash, implemented inhouse without the use of expensive money market funds.
Develop a formula for dynamic pricing based on fluctuating levels of demand.
Training of key personnel in commercial, operations and finance departments as part of hedge strategy implementation and IFRS 9 accounting practices.
