Not-for-Profits operate in an environment of complex market risks, on both the left and right side of the balance sheet. Making optimal strategic capital and investment decisions for these institutions absolutely requires understanding not simple historic averages as other planning tools employ, but an entire range of outcomes and most importantly how they interrelate. From capital structure cashflow variability and swap mark to market risk, to investment volatility and operations, with patented technologies SmartModelsTM captures more of the real world decision landscape for 501c3s than any other analytics avialable.
Proposal Evaluation: plans of finance and capital market products are viewed in the context of your existing capital structure. Any new financing strategy, unless viewed against the backdrop of existing exposures, is meaningless
Market Risk Management: Measure and calculate budgetary risks due to cash flow (CFaR, debt service volatility) and mark to market (VaR, CVaR) uncertainty. Rating agencies consider this type of analysis a best practice and rightly so; without it the flaw of averages can wreak havoc
Independent Idea Generation: Determine what capital market ideas work for you, independent of banker proposals
Best Practice Policy Framework: Issuer constituents from management and governing boards to investors and rating agencies want to understand a clear framework the issuer is using to make capital market decisions. SmartModelsTM provide that framework.
SmartModelsTM analytics applicable to not for profits include:
Stage I - Go from zero to full debt profile including refunding genealogies and debt paint in seconds with BloombergTM link
Stage II - Targeted analysis of risk and hedging for two structures: investment to bonds, swap to bonds, and swap to investment
Stage III - Worried about interest rate risk on your balance sheet? Quantify, manage, and determine your optimal position given your forecast and its uncertainty
Capital - Doing a new borrowing and need to select from multiple debt strategies? Capital visually and interactively shows you the seamless integration of debt sizing and cash flow risk management
Balance - Address the complexity of market risks across the balance sheet. Balance measures, manages and finds optimal strategies for liability cash flows and investment returns. User may also capture operating performance and volatility.
Calibrator - Is market risk modeling new to you? Calibrator helps you understand the nuances of this analysis using historic data, forecasts, or market implied distributions; delivered intuitively and without the usual mind-numbing headache
Structure - Comprehensively determine your optimum financing and re-financing strategy visually and interactively using Structure. See how Structure automatically selects refunded bonds based upon the objectives and constraints of the financing problem
Refund - Screening refunding candidates is a fundamental part of public finance analysis. See how Refund's state-of-the-art optimization algorithms can maximize your overall savings given limited capacity for up to three different markets
Escrow - Use BloombergTM Link to grab the universe of securities you define and get the cheapest escrow cost possible for up to twenty escrows simultaneously.
Curves - Need to understand the dynamics of your swap mark-to-market exposure? SmartModels Curves is all you need.