Hedging with Compass

Lenders today need a partner who has the flexibility, depth of knowledge and technology that can scale alongside them. Compass is the only risk management provider that is able to work with clients on three different levels and has the ability to migrate between these relationships, as clients needs change: 

• Outsourced Hedge Advisory Services – Compass maintains its valuation and risk management model and executes all trades on a client’s behalf.
• Hosted Valuation and Risk Management Software (ASP Model) – Compass maintains its valuation and risk management models on behalf of the client while the client executes their own trades.
• Software Licensing – Compass licenses its valuation and risk management software, CompassPoint™, the same software its Hedge Managers use to manage its Outsourced Hedge Advisory clients and the same software Compass maintains and hosts for its ASP clients.

The combination of licensing analytics and providing those analytics and hedge execution on an outsourced basis has allowed Compass to stay on top of current market conventions and valuation and risk management needs as a direct participant. This daily direct experience of valuing and hedging mortgage collateral, combined with input from larger licensing clients provides Compass with comprehensive feedback which Compass can translate into more relevant, intuitive and efficient analytics.