If your institution needs to manage liquidity risk, concentration risk, credit risk, or overall interest rate risk, we have the ability to draw upon our deep client base to offer a wide market for the benefit of participating institutions.
The Baker Group works with both buyers and sellers to properly educate them about the benefits of loan participations as they pertain to each institution’s balance sheet.
Benefits for sellers
- Additional source of balance sheet liquidity, which may also improve regulatory liquidity ratios
- Offers the ability to reduce concentration and credit risk
- Empowers management and ALCO to better control overall interest rate risk and ALM ratios
- Opportunity to build an “off balance sheet” revenue source through servicing income
- Potential to make loans above legal lending or concentration limits
Benefits for buyers
- Ability to increase asset allocation into loans
- Improve loan diversification by product and geography
- Increase overall loan interest income
- Empower management and ALCO to better control overall interest rate risk and ALM ratios
Asset classes include but are not limited to
- Autos – new and used, direct and indirect
- RVs, trailers, and boats
- Mortgages – fixed and ARM products, custom structuring available
- Commercial – retail space, multifamily properties, hotels, restaurants, etc.
For additional information or to discuss potential buy or sell inquiries, please contact a Baker Group representative.