Why is Andi offering to create a new scenario using S&P data?
Andi suggests creating a new scenario using S&P data when she believes there is an opportunity to increase your loan’s return, based on S&P’s Pricing Guidelines.
What are S&P’s Pricing Guidelines?
S&P’s Pricing Guidelines are offered for Prime- and LIBOR-based loans by analyzing similar transactions in each local market. Upfront and unused fees recommendations are also provided, where applicable.
S&P Global Market Intelligence’s Performance Optimization Program is a data-driven solution that helps banks optimize their commercial loan spreads and fees to small and mid-size companies, while also considering their broader total relationship profitability, volume/market share and customer satisfaction objectives.
To do this, S&P's clients partner with them to share detailed terms and conditions at the transaction level, on more than 900,000 loans each month. S&P's experience cleansing and standardizing commercial loan data, combined with their strong business knowledge and analytic methods, enable them to understand detailed pricing levels and trends across the country.
Because of this, S&P is able to help clients increase risk-adjusted revenue by providing tailored pricing guidance and programs for individual loan transactions. As the market changes, S&P pricing guidance changes since they refresh their dataset on a monthly basis. This pricing guidance is coupled with detailed management reporting because S&P strongly believes in the importance of regular measuring of performance to stay on top of opportunities and vulnerabilities.