Specialised IB Team Series: Asset Liability Management

This team is quite interesting and niche in what they cater to as well as the skill set and knowledge required. You’ll need extensive accounting knowledge which is why serves as a great choice to transition or “exit” to #investmentbanking especially for those with experience in audit and finance departments.

However, it is much more complicated and technical than traditional accounting and auditing as you need strong understanding of other financial concepts likes FX and rates. This is because some of the duties will involve calculating the cost of funding for the bank.

The role demands a high quantitative aptitude for balance sheet and risk analysis. The Asset/Liability Management (ALM) process tends to focus on bank loan portfolios and pension plans. The #ALM team creates risk assessment models for computing the bank’s net interest income projections under various stress scenarios, assessing excess liquidity, and the bank's economic value of equity to ensure regulatory compliance and mitigate risk. The team ensures that the bank earnings and interest rate risk profile are well within the range of the institution’s risk appetite. You’d be involved in analysing, developing, and overseeing funding and hedging strategy while collaborating with finance, treasury, risk, and other stakeholders. 

Hence, there are some similarities that Asset and Liability Management has with FX and Rates Sales roles in S&T despite ALM being a more of a back-office division that’s fairly more technical than other accounting/ advisory. So if you aspire to crack some technical roles in the front office, including #salesandtrading, your experience with the ALM team can come in handy. 

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