Modeling Deposit Portfolio Rates: Combining Replicating Portfolio Concepts with Regression Analysis

Publication: Novantas Perspective (March 2016) Co-authors: Greg Muenzen, Steve Turner, Pete Gilchrist

PPNR and ALM modeling teams know that the bar for deposit rate modeling has risen. This article explains the Novantas regression-based approach and compares its performance to beta and replicating portfolio techniques.