Leeds Building Society

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The Challenge

Leeds Building Society has been using ALMIS Hedge Accounting for over 10 years. The team have the responsibility of managing the Balance sheet whilst reducing the impact of interest rate fluctuations in unpredictable market conditions triggered by:

  • Changes in central bank policies
  • Global macro-economic events

Today the Hedge Accounting team manage approximately 360 swaps, made up of 300 macro asset swaps, 60 macro liability swaps and 2 micro swaps, at a total value of £20bn. Their main aim is to efficiently achieve all necessary results for each hedge. Mark Caffrey, Financial Reporting Lead and Assistant Technical Account Heather Ellison are subject matter experts (SME’s) who have been using ALMIS at the society for the past three years.

Priorities include:

  • Ease of use and achieve the correct results.
  • Navigate the process in the most efficient manner.
  • Automation.

 

ALMIS Hedge Accounting Solution

The Finance team use ALMIS Hedge Accounting to overcome the complex hedge accounting challenges and effectively navigate the fluctuations in interest rates. Mark is responsible for overseeing the production of the monthly hedge accounting numbers.

 

Key areas of the ALMIS Hedge Accounting solution used include:

  • Accounting journals
  • Match and reconciliation report
  • Fair value and cash flow hedge accounting
  • Macro portfolio and Micro hedge accounting
  • Auto Hedge Item Allocation
  • Yield curve and valuation features
  • PV base hedge ration calculation over time

    • It’s a sophisticated solution

    When I joined the society, I was able to pick up the ALMIS software quickly and felt confident using it’s features right away thanks to the extensive documentation and training available to users. It’s a sophisticated solution that is extremely user friendly and easy to navigate.

    Heather Ellison

    Leeds Building Society