MSR Hedging
Mortgage Servicing Rights (MSR) risk management is a full-time job – and one to which our team takes a systematic and comprehensive approach. We consider it imperative to recognize and manage ALL risk factors:
- Interest rates
- Volatility
- Modeling
- Option skew
- Scenario-based performance
Our approach to MSR hedging includes:
- Daily monitoring of hedge performance (intraday updates optional)
- Multiple Horizon Analysis – typically instantaneous, 1-month, 3-month, and quarter-end
- In-depth research and advice on all aspects of hedge construction
- Constant review of all hedge positions and strategies
- State-of-the-art trading platform
- Customized financial solutions to a select group of financial institutions