Hire a professional team of financing consultants to help you with MSR hedging

Posted by Elite Internet Technologies on February 1st, 2017

When it comes to hedging your investments, the complexity of the instrument can vary depending on what you are looking to hedge, but the fact that you can hedge the volatility of your investment doesn’t change. Such is the case with mortgage servicing rights, commonly referred to as MSR. The MSR needs to be properly understood in order to understand the volatility of the product, and if you have many different MSR, then you need to make sure that your instruments are understood in context of the overall portfolio, rather than each individual MSR, so that you can get the best possible estimate of your volatility and risk of loss.

One of the ways that you can do that is by working with financing consultants who have a long history of working with customers to make sure that they understand their MSR risk properly. They will be able to show you what risks you are taking with your MSR investments, and make sure that you are comfortable with the volatility that you are taking on as well. These are two things that are extremely important, because problems arise when you don’t understand the volatility that you are taking on and it surprises you when situations occur where your investments start to move in the wrong direction.

A company like United Capital Markets will be able to help you better understand your MSR risk with hedge accounting services and their software solutions that can help you calculate that risk for yourself. When it comes to financing consultants Denver, they are the people that you want to trust with your MSR risk analysis. If you are interested in learning more about their firm, then you should visit their website at www.ucm-inc.com. If you can’t find what you need to know about their firm on their website, then you can get in touch with them to set up a consultation.