Credit Portfolio Management

The strategic element revolves around a comparison of the existing interest burden and the possibilities offered by the current and forward money and capital markets. The technical requirements for modifying the interest payable on individual loans are evaluated to give municipal and district leaders a reliable basis on which to plan. The possibility of tapping into development funds is examined, as are the opportunities for reducing the interest burden, substantial components of which are often of a long-term nature. Both interest rate derivates and alternatives from the arsenal of traditional credit management are considered.

• General Credit Inspection
• Full Credit Inspection
• Credit Portfolio Management Package
• Structured Deficit Management

General Credit Inspection

The general credit inspection particularly targets the needs of public finance institutions that want to find our their credit status simply in order to know where they stand with their portfolio and what essential actions they need to take to bring it into line with the market.

Full Credit Inspection

The full credit inspection extends the scope of the service to include a larger range of potential management products and offers strategies particularly suited to municipal authorities that wish to make broader use of money/capital market instruments and to give consideration to possible future trends in the capital market in their interest concept. This dynamic approach requires personal support for management and underpins the interest strategy with proper economic scenarios drawn up by experts.

Credit Portfolio Management Package

Public finance institutions with a credit portfolio in excess of € 50 m are recommended to try our credit portfolio management package, which includes comprehensive process management. Not only do we provide operational support at the working level and an introduction to all classes of original and derivative money and capital market management tools, but we also help the district and municipal authorities to put in place the necessary organisational structures. We attend the regular meetings of the portfolio committee too, where we present details of market trends, explain the performance of the portfolio and point out strategies that might be followed to exploit current and future opportunities in the markets.

Structured Deficit Management

Helaba provides advice not only in respect of the finance portfolio (investment loans), but also in the ever more important area of short-term public sector loans. Our structured deficit management service designs effective risk-oriented charging processes for your budget on the basis of a rigorous reorganisation of the budget deficit and clear structuring of maturity and finance. A high level of flexibility is of course assured, especially with regard to a possible unscheduled (part) reversal of the deficit, for example through the sale of assets. Regulatory authorities have already given the approach their explicit support in a whole host of cases.