An asset liability management model for housing associations

Abstract

With asset liability management (ALM), all the relevant asset and liability classes are managed in an integrated fashion. We describe an ALM model for housing associations. This model uses simulation to show the development of a housing association, usually measured as solvency and profitability, dependent on both internal (strategy) and external (economy) factors. In order to assess the associations’ risk and return profile, we generate a large number of economic scenarios. Furthermore, we will show the pitfalls of just using one or a few scenarios. Finally, we will show how this model can be used to obtain insight into the influence and effectiveness of specific instruments.

Citation

Kramer, B. and van Welie, T. (2001), "An asset liability management model for housing associations", Journal of Property Investment & Finance, Vol. 19 No. 6, pp. 453-471. https://doi.org/10.1108/EUM0000000006186