Manage your MSR volatility with financial advisory services

Posted by Elite Internet Technologies on December 30th, 2016

When it comes to investing in mortgage servicing rights, you want to make sure that you understand the ins and outs of the portfolio. These servicing rights offer you a consistent stream of income, but that income isn't without its own risk of loss. Understanding that risk is paramount if you want to do well on the MSR that you have taken on. One of the ways that you can better understand your risk is by working with a risk analyst to model your MSR risk and adjust it based on a variety of scenarios that might impact your portfolio. When you understand the risks associated with different shocks to your portfolio, you can better hedge them to make sure that they don't have as strong of an impact on you.

Using these types of financial advisory services is a good idea, but you need to know which one is best able to meet your needs. United Capital Markets is a great example of a company that is able to address a variety of needs from MSR owners.

One of the ways that they analyze the risk of these asset backed securities is by using their purpose-built HedgeCalc software to analyze your debt securities. If you are looking to better understand your risk associated with your MSR, then this is a great way to do it. If you would like to learn more about their firm, then you can visit their website at www.ucm-Inc.com.

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Elite Internet Technologies
Joined: September 1st, 2015
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