Financial Institutions Group (FIG)

Brean’s Financial Institutions Group (FIG) serves the needs of credit unions, banks, thrifts, bankers’ banks, and depository institutions nationwide.  FIG fulfills the role of Strategic Partner and Trusted Advisor to the banking industry by dedicating ourselves to our clients’ financial success.  Acting in a consultant capacity, FIG collaborates with a depository institution’s senior management, ALCO, and Board to develop value-added strategies tailored to their initiatives, the marketplace, and the specific characteristics of their balance sheet.  Ultimately, FIG advises our clients on how to:

  • Grow net interest margin
  • Improve return on assets and return on equity
  • Build regulatory capital
  • Effectively manage and optimize their balance sheet
  • Identify, measure, monitor, and manage risk

To ensure the unique needs of the banking industry are met, FIG has assembled a cohesive team of seasoned professionals who possess extensive experience with solution-specific expertise in capital markets, fixed income sectors, depository balance sheets, and asset/liability management.  FIG brokers, strategists, and analysts have former backgrounds as: fixed income portfolio managers; bond traders; fixed income strategists; asset/liability managers; ALM model operators; ALM analysts; risk managers; balance sheet strategists; and depository institution executives.

FIG Solutions & Services Overview

FIG offers a complete suite of solutions, products, and services that set us apart from the competition by fulfilling the ongoing operational needs, regulatory concerns, and strategic growth initiatives of our depository institution clients:

  • Fixed Incomes Sales & Trading: Institutional Bond Brokerage
  • Investment Portfolio Analytics
  • Fixed Income Strategy
  • Balance Sheet Strategy & Analytics
  • Asset/Liability Management (ALM) Modeling & Reporting
  • Financial Strategies Group (FSG)
  • Loan Pool Trading & Loan Participation Services
  • Investment Banking: Fixed Income & Equity
  • Funding Assistance
  • Regulatory Guidance
  • Client Education
  • Consulting Services

Through cross-departmental collaboration and Brean affiliates, the Financial Institutions Group also offers the following products and services:

  • Loan Related:
    • Reverse Mortgage Origination Platform
    • Credit Card Portfolio Brokerage
  • Derivatives Consulting & Guidance
  • Credit Modeling
  • Complex Loan and Securities:
    • Advisory
    • Litigation Support
    • Data Solutions
  • Bond Accounting Service

Fixed Income Sales & Trading:

Institutional Bond Brokerage

The FIG fixed income sales team employs a highly analytical approach to bond selection, trade execution, and overall bond portfolio management.  Under the guidance of fixed income strategists, FIG uses a combination of qualitative and quantitative analyses to create custom investment portfolios and develop targeted, executable bond trading strategies to complement our clients’ balance sheets.

Brean’s Fixed Income Division has earned a sterling reputation among investors for superior execution and knowledge of the markets, with average industry experience of 20+ years.

Bond Sales & Trading:
In total, we serve over 1,500 U.S. and international institutions.  Brean touches virtually all buy-side institution types that invest in the following fixed income products:

  • U.S. Treasuries
  • Agency bonds (all GSEs including FNMA, FHLMC, GNMA, FHLB)
  • Agency mortgage-backed securities (MBS)
  • Non-agency residential & commercial mortgage-backed securities (RMBS & CMBS)
  • Agency collateralized mortgage obligations (CMO)
  • Non-agency CMOs
  • Agency multi-family & commercial mortgage-backed securities (Agency CMBS: DUS, ACE, K, Project)
  • Agency home equity conversion (reverse) mortgage-backed securities (HECM)
  • Asset-backed securities (ABS)
  • Small Business Administration securities (SBA)
  • Corporate Bonds
  • Municipal Bonds
  • Negotiable Certificates of Deposit (NCD)

Investment Portfolio Analytics

  • Brean IPA © : Investment Portfolio Analysis
  • Strategic Investment Planning
  • What-If Scenario Modeling i.e. Before & After
  • Bond Swap Analyzer
  • Portfolio/Trade Optimizer

Fixed Income Strategy

Brean Capital prides itself on being recognized as a thought leader within the fixed income community.  Our Strategists are routinely sought after by the financial press to provide their bond market insights.

In addition to providing cross-sector relative value bond trade ideas, bond market insight, and yield curve analysis to institutional clients, the Fixed Income Strategy team also provides periodic commentary on macroeconomic themes, interest rates, mortgage prepayments and the housing markets.

Balance Sheet Strategy & Analytics

Balance Sheet & ALM Analytics

  • Brean ALManager © : ALM Modeling Service: quarterly, semi-annual, annual reporting
  • What-If Scenario Modeling i.e. Before & After of the Balance Sheet
  • Yield Curve Scenario Modeling
  • Stress Testing
  • ALM Modeling Parallel Run
  • ALM Model Validations

Asset/Liability Management (ALM) Modeling & Reporting

Brean ALManager © Modeling Service uses a combination of the industry-leading, state-of-the-art ZM Financial Systems ZMdesk™ ALM Model and proprietary analytics. FSG offers an ALM Modeling Service that reports on:

  • Interest rate risk analysis
  • Economic value of equity calculations (EVE)
  • Net interest income simulations (NII)
  • Capital adequacy reporting
  • What-if scenario modeling
  • Stress-testing

Financial Strategies Group (FSG)

FIG offers Balance Sheet strategies and analytical tools through the Financial Strategies Group (FSG).  FSG’s ALM analysts have decades of experience analyzing and optimizing depository institutions’ balance sheets.  Employing a top-down methodology, FSG analysts assess the entire balance sheet based on the client’s specific needs and risk parameters in relation to:

  • Macroeconomic forces
  • Domestic economic trends
  • Industry competitive landscape
  • Current & forward yield curves
  • Client’s overall strategic initiatives
  • The institution’s financial goals

In conjunction with Fixed Income Strategy, FSG reviews client balance sheets, applying Brean ALManager © and Brean IPA © analyses to:

  • Devise balance sheet strategies
  • Create tailored investment portfolios
  • Identify and select appropriate fixed income sectors
  • Select specific individual bond holdings
  • Run ALM Modeling
  • Educate Sr. Management, Board, & ALCO

Loan Pool Trading & Loan Participation Services

  • Loan Trading:  Whole Loan Pool Purchases & Sales
  • Loan Participations
  • Loan Securitizations
  • Loan Categories:
    • Residential Real Estate Loans
    • Commercial Real Estate Loans
    • Auto Loans: Direct and Indirect
    • Business/Commercial Loans
    • Taxi Medallion Loans

Investment Banking:  Fixed Income & Equity

Brean’s Investment Banking Division provides our clients with efficient access to capital and creative balance sheet solutions via the primary and secondary markets.  The IB Team brings a wide breadth of structuring and capital raising experience, resulting in expert execution of:

  • Capital Raising & Underwritings (Public & Private: Debt, Structured Finance, & Equity Underwriting)
  • Financings: Private Placements of Senior and Mezzanine Debt
  • Leveraged and Management Buyout Financing
  • Recapitalizations & Restructurings
  • Mergers, Acquisitions, & Divestitures Advisory
  • Securitizations

Funding Assistance

  • Brokered Deposits:  Negotiable CDs
  • Funding Alternatives

Regulatory Guidance

  • Legislative updates
  • Policy review, revision, and creation
  • FDIC, OCC, NCUA, & State Regulatory Exam Response Assistance & Guidance

Client Education

  • Webinars, Roadshows, In-house Workshops

Consulting Services

  • ALCO Guidance
  • Strategic Planning Assistance
  • Depository Institution Mergers and Acquisitions Consulting

Reverse Mortgage Origination Platform

Through an affiliate, the Financial Institutions Group offers banks and credit unions the ability to offer Reverse Mortgages in a correspondent lending capacity.

Correspondent Lender Partnership Levels include:

  • Turn-Key:  Your institution takes in loan applications, our affiliate does the rest including origination and processing, loan underwriting, closing, funding, servicing, and delivery.
  • Broker:  Your institution provides the resources for origination and processing.  Our affiliate handles the loan underwriting, closing, funding, servicing, and delivery.
  • Principal Agent:  As a principal agent, you originate, process, close, and fund the loan while our affiliate underwrites it.
  • Correspondent:  For licensed, FHA-approved mortgage bankers, our affiliate services and delivers the loans while providing the support to help you succeed in the reverse mortgage market.

Reverse Mortgage Loan Products i.e. Home Equity Conversion Mortgage (HECM):

  • HECM Fixed Rate (HECM Choice)
  • HECM Adjustable
  • HECM For Purchase

Credit Card Portfolio Brokerage

Through a Brean affiliate, the Financial Institutions Group provides:

  • Credit Card Portfolio valuation services
  • Credit Card Portfolio acquisitions
  • Credit Card Portfolio sales

Bond Accounting Service

Through a Brean affiliate, the Financial Institutions Group provides:

  • Monthly Bond Accounting Report
  • Quarterly Shock Test
  • Year-to-Date and Audit Reports
  • Data & Optional General Ledger Interfacing
  • SSAE 16 (SAS 70) Report on Controls

Financial Institutions Group Mandates

  • The Client always comes first
  • Employ seasoned professionals with a deep depository institution history
  • Utilize state-of-the art, industry-leading financial analytics systems
  • Provide incomparable service, advice, and value as a Trusted Advisor and Strategic Partner to our clients

The Financial Institutions Group is uniquely positioned to provide creative, intelligent solutions to assist our clients.  We provide the expertise, guidance, and strategic advice necessary to meet the challenges and opportunities intrinsic to today’s depository institutions.

Become a Financial Institutions Group Strategic Partner today: call (212) 702-6691 or email FIG@breancapital.com