GGAM Perspectives
What are the consequences of being wrong?
IRR within asset/ liability management:
Golden Gate Asset Management GP was established on 10/1993 as an SEC Investment Advisory subsidiary of Golden Gate Securities, LLC, which I co-founded on 1/1991. Its advisory services were placed on inactive status while expanding to Asset/ Liability Interest Rate Risk Assessment and Compensated Risk Management.
Why GGAM?
CFOs are trained to balance financial statements and to reconcile past reports to the penny. How to manage the risks to cash flows of assets and liabilities over a budget or five-year cycle is often learned on the job. Every budget is based on assumptions about the direction of interest rates, net interest margins, and forecasts of local, national and global economies.
It’s a tough job – even for economists: from 1982 through 2001, 70% of all Economists surveyed by the Wall Street Journal got even the direction of interest rates wrong.[1]
However, cash flows of assets and liabilities can be determined with a high degree of accuracy once an interest rate scenario is selected. This is what GGAM does:
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strategies to determine optimal asset allocations, liquidity and liabilities…
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and the changes in IRR, concentration and liquidity risks…
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and the consequences of being wrong
Let me show you how to optimize you asset allocation, assess your IRR and liquidity risks, and manage the degree of their compensated risk.
I’m an innovative investment professional with experience as a Director of Treasury & Investments, Managing Partner of a Broker/Dealer, Controller, Committee Chairman and Board Member, encompassing both sides of the capital markets.
I dream in three-dimensional color spreadsheets when creating strategy.
I’m good at what I do: from 2003-2008 my portfolio was in the top 3 of the largest California County portfolios and California’s Local Agency Investment Pool. Net gains on sales, 2008-2016: over $27,000,000.
I don’t mind being wrong, but I hate being surprised.
Managing markets is a wonder-full profession with an impartial scorecard. Anything that affects interest rates interests me: Japan demographics, Russia’s military, China’s child policy, Class A vacancy, Baltic Dry, M2…
INNOVATIVE SOLUTIONS
1.Problem – borrowing short, lending long: savings accounts were too short. Solution: pioneered the first retail step-up CDs; generated $100M+ deposits.
2.Problem – Balance sheet duration drift: Solution-the Buyers’ Bond Pix(TM) shows changes in risk metrics for any change in bond positions and ranks each asset class’ total return. I built the model to identify what to sell or buy for optimal performance, showing the risk and return for every strategy.
3.Asset Liability Management reporting: My 1PALM innovation provides balance sheet and income statement of all assets on one page, identifying liquidity, concentration, extension and interest rate risk as well as compensated risk assessment - enabling ALCO to prioritize issues by severity of risk. Presentation time: 15 minutes.
SUMMARY
Balance sheet scenario modeling, ALM analysis & implementation, creation of new savings certificate products and new-issue agency bonds with embedded derivative options. $1.5 billion+ portfolio management, interest rate, liquidity & geopolitical risk analysis, forecasting, modeling, risk management, liquidity analysis, risk based pricing, execution strategy & risk mitigation.
Also, my daughter thinks I'm wonderful!
Robert Buyers, General Partner
Carpe Diem! – 650/440-0380
https://www.linkedin.com/today/author/bobbuyers
[1] Can Anyone Predict the Future Direction of Interest Rates, Performance Trust, April 21, 2011