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MSR Hedging

  • Risk Advisory

    • Hedge Advisory – Shocks and sensitivities analysis applying our best in class model provided to our clients on a periodic / on demand basis

  • Trading

    • Incenter manages the risk exposures and executes trades on behalf of client and communicates with client before all recommendations  

    • Trade confirmations and reconciliations

  • Valuation

    • OAS Valuation – MSR Valuation on a OAS framework on a periodic basis / on demand basis


Incenter Hedging Capabilities


Incenter’s hedging model makes a number of improvements to typical Static models which can lead to less volatile asset performance, less hedging, better portfolio run rates.


Incenter utilizes a stochastic model which accounts for various future interest rate scenarios and is consistent with mortgage asset pricing in an arbitrage free environment.


Incenter’s model accounts for realistic market dynamics of current coupon by using a unique volatility calibration approach.


Incenter’s secondary market and MSR modeling experience allows our clients access to deeper understanding and insights of the portfolio over time.

Customized solutions for optimizing your hedge

Incenter = best in class modeling + deep market insight 

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