Capital Markets School - October 2023

Internal Use Only

Evaluating IRR Simulation Models

One ‐ off Simulation Runs • Can management run what ‐ if simulations on strategic ideas?

Model Inputs

Scenarios • Magnitude,

Assumptions

Outputs • NII, EVE, NI

• Call Report, Chart of Accounts, or Hybrid

• Is

Pace (Shock vs. Ramps), Time Horizon, Yield Curve Shifts (Parallel vs. Non ‐ parallel)

management able to input and change assumptions?

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Internal Use Only

Model Outputs

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