Derivative Path has introduced ALM Strategy Builder, a new product designed to help banks and credit unions build, test, compare, and present interest rate hedging strategies within a single platform environment.

The launch comes as treasury and asset-liability management (ALM) teams face growing pressure to manage balance-sheet risk more efficiently while also communicating hedging decisions clearly to boards and regulators.

According to Pradeep Bhatia, financial institutions already understand the importance of hedging, but many still lack infrastructure tailored to the operational complexity of modern treasury functions.

“The institutions we work with are not waiting to be told that hedging matters; they already know,” Bhatia said. “What they need is infrastructure that matches the seriousness of what they’re doing.”

Derivative Path ALM Strategy Builder for Banks and Credit Unions

The ALM Strategy Builder platform allows treasury teams to model hedge portfolios using standard rate-shock scenarios, custom market shocks, and user-defined rate paths. The platform recalculates results in real time and lets Treasury teams review them independently or alongside broader balance-sheet interest rate risk metrics.

The platform also includes side-by-side strategy comparison tools, allowing users to assess multiple hedging proposals simultaneously across various scenarios. Pre-configured templates are to simplify common strategy structures and reduce manual setup work.

One of the platform’s central features focuses on reporting and presentation workflows. Derivative Path said the system can generate ALCO-ready presentation materials directly from the analytical environment, removing the need for treasury teams to rebuild charts and reports separately for committees or board meetings.

An integrated AI assistant has also been in the platform. The assistant can interpret portfolio outcomes, suggest alternative hedging structures, identify portfolio concentrations or maturity mismatches, and generate strategies from plain-language prompts.

For example, users can ask questions such as how a proposed five-year swap could affect earnings exposure and receive data-driven responses based on live portfolio information.

Isaac Wheeler said the product is going to help institutions operate with the analytical depth often associated with larger derivatives desks.

ALM Strategy Builder is now available as a standalone subscription product, and institutions do not need an existing Derivative Path relationship to access the platform.

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