Hi, could someone enlighten me on what exactly I'd be doing in an "Asset/Liability Analyst" position. It seems somewhat back office with little mobility. Please let me know your thoughts. I was referred to this position but am not sure if I can parlay it into a valuation/bookrunning job a couple years down the line. The description is below:
This position is responsible for supporting the Asset/Liability Management Team which has primary responsibility for Asset/Liability analytics, modeling, strategy formulation and reporting to Senior and Executive Management.
An Analyst will participate in the annual Budgeting and Strategic Planning process as well as on-going monthly and quarterly Asset/Liability Committee (ALCO) work. Analysis and reporting will be focused on balance sheet construction and net interest income (NII) forecasting and the related management of interest rate risk, liquidity risk and capital adequacy. An Analyst will contribute to the Internal Capital Adequacy Assessment Process (ICAAP) and the annual Capital Plan. The role will require close collaboration with Treasury Management, Enterprise Risk Management and Finance.
Roles and Responsibilities:
Modeling & Analytics
Prepare Net Interest Income (NII) Forecasts and run Interest Rate Risk models calculating changes to NII and Economic Value of Equity (EVE) in various rate scenarios
Calculate current and forecasted Liquidity positions and run various simulations and stress tests
Perform a variety of behavioral analytics on deposit balances including, but not limited to, a core deposit analysis, non-maturity deposit behavior, and concentration risk
Perform loan prepayment analysis and forecast prepayment speeds
Use deposit and loan analyses to inform Funds Transfer Pricing (FTP) methodologies; participate in the establishment and maintenance of FTP rates used for profitability analysis
Management Reporting
Prepare reports for ALCO and Risk Management Committee to illustrate and explain the Bank’s current and forecasted Asset/Liability position against stated goals with a focus on strategic level balance sheet allocations to manage Interest Rate Risk, Liquidity Risk and the efficient use of Capital
Contribute to the preparation of quarterly ICAAP reports and the annual Capital Plan
Contribute to preparation of ALCO and ICAAP policies
