ALM First provides comprehensive hedging and derivative advisory services for financial institutions. Our expert guidance, analysis and industry experience enables us to effectively utilize hedge instruments and reduce interest rate risk for client financial institutions.

For institutions selling mortgage loans to secondary market investors, it is very important to understand the inherent risk and ensure this risk is managed properly. Doing so is important for many reasons.

  • It is a regulatory expectation that risk is well understood and properly managed
  • A strong risk management process will add to the profitability of the institution
  • Strategies to minimize hedge costs and enhance income through warehousing can lead to incremental profit, which can be substantial over time

ALM First provides a turn-key and easy to implement mortgage pipeline hedging service to enhance profitability, reduce interest rate risk and gain keener insights into your pipeline process.

The service includes the following:

  • Comprehensive loan fallout analysis and pull-through ratios
  • Daily activity reporting which tracks new locks, fall out loans, new loan sales, and hedge trading activity
  • Best execution of TBA trades using our strength of managing over $20 billion in fixed income assets
  • Creation of hedge strategy specifically designed for each client
  • Monthly performance reports
  • Monthly accounting reports
  • Access to our experts to educate and answer questions from auditors

Start paper trading today and see how much additional income you can earn.

For more about Mortgage Pipeline Hedging, CLICK HERE


ALM First offers risk measurement, valuation and hedging solutions to reduce the impact MSRs may have on your institution’s financial statements.  We provide a turn-key solution, which focuses on analytics, advice and performance.

There are multiple assets competing for a spot on an institution’s balance sheet, and interest-rate risk shouldn’t be grounds for exclusion.  ALM First also offers fully turn-key consulting and advisory service to clients interested in hedging with derivatives.  Derivative hedging techniques using a variety of over-the-counter or exchange-traded instruments can help institutions retain longer-duration core assets without worrying about the interest-rate risk that accompanies them.

Contact ALM First

Competitiveness in the mortgage marketplace has pushed risk management and profitability strategies to the forefront. Originating conforming mortgage loans to be sold to the agencies exposes your institution to pricing risk from the time of the initial commitment to the borrower until the time that the loan is committed for sale to the agencies. Currently, many institutions pay the GSEs to hedge their pipeline for them, at a significant cost. Effective mortgage pipeline management presents an opportunity to enhance return and profitability through risk reduction and cost savings.
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