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Wilary Winn LLC
  • (651) 224-1200
  • Services
    CECL
    & ALM
    • Credit Risk
      • Current Expected Credit Loss (CECL)
      • Capital Stress Testing
      • Concentration Risk Management
      • Real Return Analyses
    • Outsourced ALM Advisory
      • Interest Rate Risk Management
      • Budgeting and Balance Sheet Optimization
      • Liquidity Stress Testing
    Mergers &
    Acquisitions
    • Preliminary and Final Merger Valuation
    • Accretion True-up
    • Goodwill Impairment Testing
    • ASC 310-30
    Valuation of
    Loan Servicing
    • Residential MSRs
    • SBA 7(a) Loan Servicing
    • Commercial Servicing
    Additional
    Services
    • Mortgage Banking Derivatives (IRLCs)
    • Fair Value Footnotes
    • ALM Model Validation
    • Non-Maturity Sensitivity Analyses
    • SBA 7(a) Gain on Sale
    • TDRs
    • Non-Agency MBS
    • TruPS
    Overview of Services
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    • Overview of Services
    • CECL & ALM
    • Mergers & Acquisitions
    • Valuation of Loan Servicing
    • Additional Services
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Real Return Analyses

We offer real return analyses to help financial institutions better understand interest rate and credit risk at the loan level resulting in more effective loan pricing and increased profitability.

Why Choose Us

We believe that modeling interest rate and credit risk in a holistic way under varying macroeconomic conditions can lead to more effective loan pricing and increased profitability. We utilize discounted cash flow models, which we run at a granular level under multiple macroeconomic forecasts. Our credit loss estimates are in full accordance with the Current Expected Credit Loss model.

We have found in many cases that financial institutions are underpricing for the interest rate and credit risk they are taking, particularly in the lower credit bands, and that the total return considering interest income earned and credit losses incurred is negative.

Our Approach

Our real return analyses are performed in connection with our Capital Stress Testing and Concentration Risk Analyses. Informed by the results of this work, we obtain loan pricing sheets and tailor our work to our client’s existing risk tiers and pricing bands.

We model expected prepayments and credit losses iteratively under multiple macroeconomic conditions to provide our clients with deep insights regarding potential real returns and help them identify the credit bands with the highest return.

Services

  • Credit Risk
    • Current Expected Credit Loss (CECL)
    • Capital Stress Testing
    • Concentration Risk Management
    • Real Return Analyses
Featured

Making the Business Case for the CECL Approach – Part III [White Paper]

Part III – Expected Real Return Analysis Released June 2017 This white paper is the third part of a three-part series that presents the business benefits resulting from incorporating lifetime […]

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What our clients say

We’ve been a customer of Wilary Winn’s valuation services for numerous years. We view Wilary Winn as a partner that is responsive to our needs and presents us with valuable […]

Julie Kim, Executive Vice President & Chief Financial Officer, Logix Federal Credit Union – Burbank, CA
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About Wilary Winn

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  • CECL & ALM
  • Mergers & Acquisitions
  • Valuation of Loan Servicing
  • Additional Services
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  • (651) 224-1200
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