On Friday night the Dodgers and the Padres were tied in the bottom of the 12th and San Diego had the bases loaded with one out. Left fielder Seth Smith was at bat so the Dodgers did something incredible – they utilized their data to optimize their defense. Since Smith bats left handed, has not exhibited much bat control/range (0-13 in the last 3 games and an extreme pull hitter) and was desperate just for a base hit to move a runner to score, the Dodgers calculated that if Smith got a hit it would be short and to right field.
There is a split between community bank managers on how to best manage loan portfolios in today’s environment. While some take a passive approach, others are attempting to rebalance the credit portfolio for today’s environment, while still others are attempting to rebalance the credit portfolio for tomorrow’s environment. Where your bank falls in this spectrum depends on your view on active bank portfolio management.
Let’s say you want to refinance a loan for a borrower that is at another bank and the loan has a prepayment penalty on it. The borrower has two options: 1) Refinance today and pay the penalty, or 2) Let the loan mature and then refinance at the then prevailing rate. We have tried all different methods and the way best to frame this problem is to present the solution in the following manner: