Simply The Best Solution to Managing Secondary Risk

The secondary mortgage market is truly dynamic and relentlessly unforgiving. Effectively hedging your mortgage pipeline is a complex and critical aspect of running a profitable mortgage enterprise. To do this well requires more than an experienced, well-trained team. Rather, one equipped with the proper analytical tools. Pipeline hedging programs must be statistically robust, analytically reliable and comprehensive enough to ensure success.

MIAC can provide you those tools and much more through its MarketShield® pipeline-hedging solutions.

MarketShield® v5.4.3 features include:

SellSide Trader™     

BuySide Trader™     

Rate Sheet Generator™


Hedge Execution Tools

Flexible Position Reporting

View any position in terms of P&L shocks, duration-weighted notional exposure shocks, or traditional matched coverage “slotting and bucketing” approaches.

User customized position reports provide a clear picture of your P&L profile

Flexible Position Reporting


Interest Rate Model

MarketShield® uses MIAC’s Libor Market Model (LMM), the most advanced interest rate model available today. MarketShield’s® option adjusted spread (OAS) analytics enables secondary market risk professionals to accurately measure the anticipated price sensitivities of their rate locks, closed loans, TBA hedges, and other derivative hedge instruments. Effective and profitable hedging begins with accurate measurement of the price sensitivities of the underlying assets and their hedges.

Multiple Hedge Instruments & Templates
  • Forward TBA MBS
  • Options on Forward TBA MBS
  • Eurodollar Future Strips
  • Interest Rate Caps and Floors
  • Interest Rate Swaps
  • Amortizing and Bullet Swaptions
  • Treasury Futures
  • Options on Treasury Futures
MarketShield’s® derivative pricing models have been extensively validated and we welcome the opportunity to demonstrate the accuracy of their pricing.
Intraday Position Analytics

Position reports can be run easily multiple times a day to capture the impact of pipeline changes or market movements, while retaining all historical position data.

Intuitive Hedge Activity Input and Maintenance

Entering hedge activity into MarketShield® is easy and intuitive. Pair-offs and pool allocations are tracked for every trade, to insure accurate reporting of open positions and cash receivables or payables. Alternatively, trade information can be imported from other trade tracking or delivery systems.

Best Execution, Gain/Loss Reporting and Accounting

MarketShield’s best execution (BestX) model provides the most flexible, comprehensive, and accurate BestX model available. It provides the full capability to evaluate and to optimize MBS execution, AOTs, cash executions, mandatory sales, and servicing released/retained opportunities. Further, precise loan level calculations for all prospective private and agency investors provide you tools to secure the optimum price for each loan. 

Daily Loan Level Mark-to-Market and Expected Gain/Loss

Daily mark-to-markets are performed on every loan in the pipeline, factoring in each loan’s exact best execution and each lock’s closing probability. Users can choose to include or exclude the value of MSRs and interest carry.

Intra-Day Hedge Valuation

MarketShield® provides precise daily valuation of each hedge included in the macro-position, so movements in the overall P&L can be monitored on a daily (or even intra-day) basis.

Daily Change Attribution Reporting

MarketShield® reports provide the information you need to analyze daily P&L changes. Summary reports provide the P&L effect of new locks, new closings, fallout, existing pipeline transitions and investor allocations. Hedge activity reports provide the granular impact of changes in existing trades, new trades, pair-offs and allocations. All of the underlying change information is available at a detail level, allowing you to easily monitor key hedge factors of effectiveness with full attribution.

P&L Reporting

Our daily, month-to-date, and year-to-date reporting capability allows you to continuously monitor your P&L performance, eliminating month-end surprises and giving you the detailed information you need to make better management decisions.

Best Execution, Price and Pull-Through Loan Level Auditor

MarketShield® loan-level pricing report provides complete transparency. Choose to review every calculation being performed in pricing, best execution and pull through analysis for any loan. Errors, omissions or necessary modifications become easy to spot and correct in addition to providing detailed audit support to regulators and examiners.

Accounting and Reconciliation Support

Export expected values for purchase price, feature price adjustments, buy-up and buy-down fees, and other investor price adjustments to facilitate reconciliation of loan sales and securities settlements. Export loan-level and hedge-level mark-to-market information to support month-end accounting accruals, with all the transparency needed to meet GAAP and regulatory accounting requirements.

Data Management and Reporting

MarketShield® lets you load market data directly through MIAC’s Bloomberg API, and Reuters (EIKON) DDE, and TradeWeb interfaces. Our DataRaptor® data management and auditing tool automatically screens for potential data problems to help you discover defective pricing feeds before they cause a problem in your position reports. Need to pull in pricing from the web or from internal spreadsheets for specific products? Not a problem: Data interfaces can easily be established from any Excel spreadsheet.

MIAC® DataRaptor® File Mapping and Auditing

Our DataRaptor® tool allows you to build smart data extracts, complete with auditing and repair rules to catch data problems and correct them before your position reports are generated. Alternatively, you can link MarketShield® directly to any ODBC compliant database.


Request a demo