Asset Liability Management?

Just wondering, what does asset liability management entails in terms of job itself. In banking, asset and liability management is the practice of managing risks that arise due to mismatches between the assets and liabilities (debts and assets) of the bank. Though many insurance companies also have this practice.

So which group does this belong to in a bank? Treasury? Really back-office?

WSO Elite Modeling Package

  • 6 courses to mastery: Excel, Financial Statement, LBO, M&A, Valuation and DCF
  • Elite instructors from top BB investment banks and private equity megafunds
  • Includes Company DB + Video Library Access (1 year)

Comments (3)

Apr 12, 2012 - 6:51pm

at my place, it means trading swaps and swaptions, long/short bonds, etc. sometimes they trade for profits, but most of the time they hedge every trade we do at the same time we final the deals with the counter party, except for arms

Apr 12, 2012 - 6:52pm

Asset Liability Management Compensation (Originally Posted: 04/07/2014)

First time posting. Very impressed by the website and learned a good bit from various ALM postings already.

I have an interview at a bulge bracket this week for an Asset Liability Management Risk analyst position, mostly doing duration gap analysis and modeling using VBA, SAS and R. It's an entry level position (fresh out of a Masters program) and I don't have any meaningful finance-related experience.

Wondering if you could give me a ballpark for salary expectations? Through online research, I've seen that most figures range from $70K to $100K.

Start Discussion

Total Avg Compensation

May 2021 Investment Banking

  • Director/MD (9) $911
  • Vice President (35) $364
  • Associates (194) $234
  • 2nd Year Analyst (110) $151
  • Intern/Summer Associate (96) $145
  • 3rd+ Year Analyst (26) $145
  • 1st Year Analyst (404) $131
  • Intern/Summer Analyst (329) $82