Strategic Loan Pricing
12/04/2017, 1:30 PM to 3:30 PM
No location provided
Description:
Presented by Richard Hamm
Monday, December 4th, 2017
1:30 pm - 3:30 pm CT
Covered Topics:
The
two "big issues" are:
1. Coming to grips with risk-based pricing
- Differentiating on all risk metrics
- Recognizing economies of scale on larger loans
- Comparing relative loan pricing within your portfolio
- Watching out for loans that are typically under-priced
2. Linking asset/liability tools to structure and price
- Setting fixed rates on average life, not full maturity
- Creative ways to use funding sources to support loans
- Avoiding prime spreads for rates fixed over one year
- Recognizing proper indexes and spreads for setting fixed rates
Three smaller issues are (a) consistently giving your customer pricing options, (b) considering proportional pricing for floating rates, and (c) using performance pricing tied to the customer's financial performance and/or loan covenants.
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