Wilary Winn - Estimation of Fair Value, Asset Liability Management (ALM), and Valuation of Illiquid Financial Instruments

Advice to Strengthen Financial Institutions

Services

We provide services to more than 200 banks located across the country, including 47 that are publicly traded.

We work with more than 200 credit unions located across the country, including 30 of the top 100.

We measure and report the critical risks facing a financial institution – credit, interest rate, and liquidity on an integrated basis – in order to provide the best of class solutions to our clients.

We measure and report interest rate, liquidity and credit risks on an integrated basis providing our clients with powerful tools to manage their business – including capital stress testing, concentration risk, and real return analyses.

To validate a client's model we input the assets and liabilities data and assumptions set (prepayments, pricing lags, pricing betas, etc.) into the ZM Desk Model to independently ensure our client's model is producing expected outputs consistent with the inputs.

We believe that developing institution specific inputs relating to non-maturity deposits is a critical part of the ALM modeling process especially given recent inflows and record low interest rates.

We estimate fair value by discounting expected cash flows, net of credit losses. This provides the most accurate estimates and facilitates our clients' ongoing accounting.

We are one of the leading providers of fair value advice to the financial institutions industry.

We are the leading provider of fair value advice and have performed over 200 merger related valuation engagements under "purchase accounting" rules.

We provide quantitative and qualitative tests of goodwill impairment.

We offer a comprehensive and cost-effective solution to the complexities arising from accounting for loans under ASC FAS 310-30.

Our TDR valuations are based on best estimate discounted cash flows, including expected credit losses in full accordance with GAAP.

We are one of the country's leading providers of fair value of illiquid financial instruments. Our valuations are based on discounted cash flows.

We provide OTTI analyses and estimates of fair value of approximately 450 CUSIPs per year.

We provide OTTI analyses and estimates of fair value on over half of the TRUP CDOs issued.

We value more than 200 MSR portfolios per year, ranging in size from $4 million to over $4 billion, and totaling over $60 billion.

We help our clients value and account for the derivatives that arise from mortgage banking activities, including IRLCs and forward loan sales commitments.

We value servicing rights that arise from loan sale participations, the sales of multi-family housing loans to the GSEs, and the sales of the guaranteed portion of SBA loans.

We offer robust, statistically-based estimates of potential credit losses for residential real estate and consumer loans.

WW Risk Management now offers concentration risk and capital stress testing analyses. We believe these engagements represent the most powerful use of our analytical models.

We provide analyses to estimate the effect CECL will have on your financial institution. Our input assumptions are derived from the hundreds of engagements we have performed since our founding in 2003.

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