Derivative Path, a derivatives and risk management platform for financial institutions, has unveiled ALM Strategy Builder, a new product designed to allow banks and credit unions to construct, stress-test, compare and present interest rate hedging strategies within a single environment.
The tool compresses analytical work that has traditionally demanded hours or days of manual effort into seconds, addressing what the company describes as a persistent operational bottleneck in hedge programme management. Whilst hedging has become an established discipline across depositories, the available tooling has struggled to keep up, leaving treasury teams reliant on spreadsheets, manual scenario reconstruction and piecemeal stress-testing processes.
ALM Strategy Builder provides treasury and ALM teams with a unified workspace capable of modelling hedge portfolios across standard rate-shock scenarios, custom shocks and user-defined rate paths, with all metrics recalculated in real time. Results can be assessed individually or in the context of balance-sheet level interest rate risk. Side-by-side strategy comparisons evaluate proposed hedges across all scenarios simultaneously, while pre-configured templates are intended to reduce friction during common strategy builds.
The platform also generates ALCO-ready outputs formatted for board and committee presentations at the click of a button, meaning the analytical and presentation layers are developed in the same environment rather than reconstructed separately for different audiences.
A built-in AI assistant is embedded across the platform, capable of interpreting portfolio results, suggesting alternative structures and constructing complete strategies from a stated objective. It can surface considerations such as offsetting exposures, concentrations and maturity mismatches, and respond to plain-language queries, for example, calculating the earnings impact of adding a specific swap, using live platform data.
Derivative Path CEO and co-founder Pradeep Bhatia said, “The institutions we work with are not waiting to be told that hedging matters; they already know. What they need is infrastructure that matches the seriousness of what they’re doing. Treasury teams at banks and credit unions are running hedging programs with real complexity, and they deserve tooling that reflects that. ALM Strategy Builder is how Derivative Path will deliver it.”
Derivative Path managing director of balance sheet strategy Isaac Wheeler said, “When a single treasury professional can model, stress-test, and present a hedging strategy with the same rigor and speed as an institution with a dedicated derivatives desk, the entire conversation changes with their board, with their regulators, and within their Treasury and finance teams. That’s what this product is designed to do.”
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