Mortgage Loan Pool Settlements

When purchasing or selling a residential mortgage pool between credit unions, or other financial institutions, accrued interest must be considered. One way to get around accrued interest is to settle on the 1st of the month. That is not always practical however. The first of the next month might be a weekend, or a large pool might have some loans […]

Bank and Credit Union Board Presentations

I will start off by saying that this template only works with Excel 2013 or higher, because we need to use slicers with a table. This dashboard template might be of interest to the CFO or financial analyst that prepares the monthly presentations for the board, finance or ALCO (Asset/Liability Management ) committees. Loans and deposits make […]

Bond Swap – Horizon Analysis – Calculator

A few posts back we looked at Holding Period Return On Option-Free Fixed Income Securities. I thought we could take that one step further, and show horizon analysis for a bond swap. In order to help explain the calculator, I have divided the analysis into three sections and placed a rounded triangle around each one. The blue […]

Holding Period Return On Option-Free Fixed Income Securities

Back in January of this years I wrote a post (Mortgage Pool – Holding Period Return) accompanied by a spreadsheet, on how to calculate the holding period return and the internal rate of return, when buying and selling a pool of mortgages. This post uses the same logic, but is applied to option-free fixed income notes and bonds. I […]

Financial Ratio Gauges

When I first retired from the position of CFO, I thought I might try and help boards of directors of smaller financial institutions, that may not have a financial background, better understand their obligation to ask management the right questions. Typically, boards are given large board reports with dozens of pages of financial information, with one or […]

MSR (Mortgage Servicing Rights) VBA Function

I have tried to stay away from VBA calculations for my Excel spreadsheets, principally because my programming does not have the polished look of a good programmer. Programming in VBA for me was self taught, and based on the “Basic” programming language I learned in the 70’s. Enough excuses. Download Excel spreadsheet :”MSR“ There are times when […]

Relationships – XIRR(), Amortization, Present & Future Value

Why do I seem obsessed with amortization schedules?  I  think they make it easier to understand other calculations. In this spreadsheet we will consider the relationship between the Excel XIRR() function (Internal Rate of Return), Present and Future Values, and of course an amortization schedule. The first thing to discuss is the difference between APR (Annual Percentage Rate) and APY […]

Time & Dollar Weighted Rates of Return Calculator

Most asset managers will publish their results in both time-weighted (TWRR) and dollar-weighted (DWRR) rates of return. TWRR is typically used by portfolio manages to compare their portfolio’s return to either other managed accounts or to an index. TWRR is more difficult to calculate for individuals because it requires more data. One must have not […]

Amortization – Variable Terms, Rates, & Payments

In my last post (PV & FV of Periodic Uneven Cash Flows & Rates) I created  uneven cash flows, terms, and rates for the present and future value of an annuity. I decided that I would apply these options to an amortization schedule. Two other posts and spreadsheets that allow multiple changes to amortization schedules […]