Transforming organizations through skillful alignment of people, process and technology.
The Hilltop Companies

Financial Engineering

Our financial engineering services are focused on the many model calculations used within the Financial Services, Real Estate and other industry segments.   We utilize the same types of models that are used for calculating cash flows, market values, losses, prepayment risks, interest spreads, etc.  Our team has extensive experience with using many different client created models, “off the shelf” models, and models that we have created as well (often to validate the client’s model calculations).

The financial models that are used most commonly are to provide calculations, scenario and/or sensitivity analyses, compliance or event notifications, etc.   Here is a summary list of such financial models:

  • Valuation models (asset values or enterprise values)
  • Loan portfolio credit analysis – trends, losses, values of a loan portfolio
  • Net realizable value calculations for real estate or other assets held
  • ALLL calculation models
  • Mortgage Servicing Rights valuation models
  • Cash flow models
  • Asset profitability analysis
  • Securitization tranche cash flows
  • Sensitivity analysis on cash flows
  • Securitization cash flow trigger models

Given our finance and audit experience, we are able to both create and test financial models that have been engineered to perform certain functions like those noted above.