middle office services
AFA offers Hedge Fund Middle Office capabilities comprising of post-trade and pre-settlement activities, including daily trade processing, reconciliation, and daily P&L reporting, in addition to collateral management, corporate actions, and cash management. For fund of hedge funds, we offer daily cash and position reconciliation, liquidity tracking and reporting, and both standardized and custom reporting.
Asset Valuation
Through AFA’s partnership with New Oak Solutions, we can provide valuations of complex and illiquid assets including residential and commercial real estate loans and securities (RMBS, CMBS, CDO and ABS), as well as assisting with collateral management. Our middle office capabilities allow us to meet daily, weekly, monthly, and quarterly reporting requirements.
Analytics
As client investment processes become more complex and volatile, AFA can provide assistance in many of the cumbersome areas where accuracy is key to successful investing. We provide a range of analytics to assist our clients in evaluating fund assets and liabilities, and enable them to make informed decisions about their portfolio.
AFA’s analytic services focus on (1) calculating important sensitivity measures to explain how securities can react to certain factors and (2) scenario analysis and stress testing to understand how securities will behave under certain macro-economic environments and markets.
Key analysis and reporting includes:
- Cash Flow Forecasting
- Sensitivity Analysis
- First and second order sensitivities
- Key Rate Durations
- Descriptive Analytics
- Stress Testing and Scenario Analysis
- Hedge Analysis
- Economic, rating agency, and statutory capital
- What-if Portfolio analysis
AFA can also assist in de-risking investment strategies allowing for single-asset and portfolio repackaging and restructuring to transfer and/or transform risk including mark-to-market and regulatory capital volatility.
Non-Discretionary Asset Management
AFA can also assist in providing our clients with optimal portfolio position rebalancing to increase cash utilization and yield. In addition, we can provide credit analysis to ensure portfolios are optimized relative to credit risk concerns.
