BREAKOUT SESSION: Pipeline Hedging Strategies
Choosing the right financial instruments to hedge your pipeline risk requires advanced analytics. TBA securities can be used to minimize basis risk, but they are often more expensive than other options and may not protect margin from large movements in financial markets. This session highlights how other financial instruments can be used to supplement TBA’s to manage pipeline risk. Panelists discuss technical requirements for alternative hedging strategies, practical implementation, and how different financial instruments can be used to manage risk in volatile market environments.
Speakers
Moderator
Jonathan Glowacki is a principal and consulting actuary in Milliman 's Milwaukee office, where he has been a leader since 2009. He manages a practice servicing the mortgage, mortgage reinsurance, credit risk transfer, and private mortgage insurance industries. Jonathan leads the development and implementation of Milliman MPIRe and Milliman's Mortgage Secondary Markets Solutions (MSMS). M-PIRe is a cloud-based mortgage valuation and securitization platform designed to provide end-to-end solutions for evaluating direct mortgage investments, insurance-linked notes, and credit guaranty products. M-PIRe integrates comprehensive data, sophisticated models, and cash flow structures to help clients evaluate individual transactions and manage portfolios efficiently MSMS is a cloud-based mortgage pipeline and MSR hedging platform developed to provide robust hedging strategies to manage market risk for mortgage companies. The software facilitates the use of TBAs and treasury futures and/or options to mitigate risk for clients while sustaining value across the mortgage lifecycle.
Speakers
Stu Kaufman is currently a Senior Vice President with City National Bank (Los Angeles) and has been with the Bank since September ‘24. His focus, in this role, is Secondary Marketing and Mortgage Capital Markets. Prior to joining City National Bank, Stu held several senior Capital Markets roles at various institutions, including Everbank, TIAA Bank, TD Bank, One American Bank and Premier Lending. At these past institutions, responsibilities ranged from trading, hedging, valuation, MSR, pricing, strategy, and portfolio management.
Les Parker advises a data analytics firm, facilitates M and A efforts, and provides interest rate risk management services, including MSR valuations and using derivatives to manage risk. For over thirty years, he has written a daily market newsletter, called TMSpotlight. Parker served as the Senior Vice President of Industry Relations at LoanLogics, a technology provider focused on improving mortgage loan quality, performance, and reliability throughout the loan lifecycle. He led consulting services, contributed to the strategic planning team, and fostered positive relationships with industry leaders. Parker has extensive experience in executive roles spanning capital markets, servicing, operations, production, and financial management. He has served as director of the largest CMO private issuer. Parker is a Master CMB.
With +20 years in Banking, Financial & Risk Management Jeremey Shiers leads the Mortgage Division at West Gate Bank (WGB). Jeremey is a regular industry event panelist focusing on Capital Markets and MSR management. Shiers began leading WGB Mortgage Division in ‘21 after reconfiguring secondary practices to improve efficiency & risk management. Jeremey joined WGB in ‘16 from The Tri-County Bank NE, where he was the CFO & COO. Shiers also served as Financial Officer & Ag Lender at Dundee Bank (FKA Security State Bank) where he set up mortgage servicing using the FHLB’s MPF program. His career includes compliance, accounting, technology, and lending at Tri-County; Dundee; George State Bank IA; & Warp Networks NE. Shiers began his career in agriculture as a farmer/rancher in central Nebraska.
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