MountainView Risk Advisors LLC (MVRA) and AVM LP (AVM) have announced the formation of a strategic alliance to provide mortgage servicing rights (MSR) risk advisory services. The firms join forces to create a leader in the industry for MSR risk management advisory and outsourcing services with over 85 years of combined MSR and mortgage hedging experience. The alliance will provide hedge advisory and analytic services to assist financial institutions in stabilizing the returns associated with the MSR assets. The MountainView-AVM combination creates a comprehensive and integrated MSR hedging, analytics, research, sales and trading team.
Clients of the alliance will be able to outsource virtually every aspect of designing and executing turnkey MSR risk management programs including identification of asset risks, infrastructure and program design, hedge strategy development and idea generation, derivatives trading and reporting, and attribution analysis. The MSR hedge advisory services are complemented by both MountainView’s 19 year history in brokerage and third-party valuation services for the MSR industry and AVM’s 27 year history in providing relative value trading strategies, trade execution and risk reporting services for the fixed income industry.
For AVM, the alliance is a natural extension to their established hedge advisory business and complementary to their overall business model which includes providing global trading services to large institutional investors, banks, hedge funds, and pension funds worldwide. Bob Koets, Head of AVM’s MSR Advisory Group, said, “The volatility and uncertainty of today’s markets as well as increased scrutiny of financial risk make successful MSR risk management more critical than ever. We look forward to teaming with MountainView to provide clients with the best possible solutions to their risk management needs."
MountainView is continuing to expand its MSR services with this strategic alliance, following the hiring of industry veteran Greg Harris to lead MVRA earlier in 2009. Mr. Harris commented, “This is an exciting combination because it capitalizes on the strengths of each company: AVM’s capital markets expertise and MSR hedging track record and MountainView’s focus on MSR asset modeling and hedge management, enabling us to deliver any MSR risk management solution, from a complete turnkey program to addressing a specific need. I look forward to working with the entire team at AVM."
For more information, visit www.mvrisk.com or www.avmlp.com.