S&B and IPI Alliance

PRE- & POST-PURCHASE DUE DILIGENCE SERVICES

THE NEW REGULATORY GUIDELINES

Pre- and post-purchase analysis of investments are now required by Dodd-Frank. In accordance with Dodd- Frank, community banks cannot rely on the major rating agencies to determine the credit risk of a security. The guidelines have taken another step to have community banks confirm that the price of a security is fair.

S&B has tools that will provide a higher level of due diligence in complying with the guidelines. Depending on which service is applicable, S&B will prepare a pre-purchase report for your bank. The services can then be used for post-purchase credit analysis, as needed.

PRE-PURCHASE MUNICIPAL BOND RATINGS

When time is of the essence, S&B can provide rapid turnaround with the S&B Pre-Purchase Bond Rating. Due to complexity, revenue bonds may require additional time for analysis. Based on the guidelines S&B utilizes in its municipal bond ratings S&B will quantify a rating range. Management can use this rating range to determine if the municipal bond will meet the bank's policy guidelines. S&B will also provide the municipality's financials and pertinent demographic information with the pre-purchase analysis.

Clients may also choose to include the S&B Market Valuation in the pre-purchase analysis to provide higher due diligence on the fairness of the price of the security.

PRE-PURCHASE MUNICIPAL BOND RATING ........................................... $200

S&B will provide complimentary language for the bank's investment policy.

S&B MUNICIPAL BOND RATINGS

Gain added insight into your bank's municipal securities portfolio with the independent rating process of our investment analyst team. The S&B Municipal Bond Ratings determine the ability of the issuer to meet the debt obligations of the bond in the forthcoming years. S&B focuses on the integrity of the municipality's financial management. Subscription service is available to provide your bank with updated ratings.

Click on each report to learn more

PRIORITY DUE DILIGENCE REPORT
The Priority Due Diligence Report is one of two Priority reports offered by S&B. The Priority reports are designed to meet the time demands of bankers purchasing new bonds or bonds available on the secondary market. The reports are also useful in receiving a general evaluation of credit risk in a portfolio.
$200
BASIC REPORT
In the Basic Report, S&B provides a breakdown of the rating components. The “S&B Scorecard,” a comprehensive financial data table, is provided at this level of reporting. Economic performance is also broken down and evaluated on a relative basis.
$325
DETAILED REPORT
In the Detailed Report, S&B also provides a breakdown of the rating components. In addition to the S&B Scorecard, the Level 2 Detailed Report also features bullet points on the issuer’s strengths and weaknesses.
$550

 

MARKET VALUATION

S&B Market Valuation is a tool for higher due diligence in determining if a security's price is fair. To determine a security's value, S&B uses two valuation methods. The first method is to determine if the security is fairly spread to the U.S. Treasury curve using S&B's proprietary pricing models. The second valuation is to get actual quotes from brokers who specialize in that type of security. S&B can value most security types in which community banks invest. These include U.S. Agencies, mortgage-backed securities, taxable municipals, tax-exempt municipals, and corporate securities.

This service is included with the S&B Pre-Purchase Analysis.

Upon request, S&B will provide complimentary language for the bank's investment policy.