Calendar of Events

Strategic Loan Pricing

12/04/2017, 1:30 PM to 3:30 PM

No location provided

Amy Davis adavis@msbankers.com 601-948-6366

Description:

Strategic Loan Pricing


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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