No one way to manage a balance sheet. No such thing as a bad loan.
Callahan’s chief analyst shares his takeaways from ALM First’s Financial Forum.
On the second day of ALM First’s Financial Forum in San Diego this week, I had the opportunity to attend five sessions throughout the day. Similar to ALM First’s winter conference, the sessions for day two were divided into two tracks, with one geared towards board members and the other tailored to finance executives.
I elected to attend sessions in the finance track, and as a result, enjoyed a deep dive into a range of asset liability management topics, covering specifics such as “Pillars of High Performing Institutions” and “Applications of Hedging Strategies”.
Optimizing Balance Sheet Performance Through A Quantitative Lens
The presenters in the “Pillars” session reinforced how high-performing institutions consistently optimize balance sheet performance, use a quantitative lens (note: no emotions allowed) to evaluate opportunities. High performers also have systems and processes in place to enable their institutions to capitalize on opportunities in a timely and efficient manner. Key to the session was a thoughtful argument to the notion that excess capital, while nice to have, can be a costly and an inefficient result of mismanaged resources.
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