Now Lynchval is enhancing ALM by implementing stochastic projections. The term stochastic refers to projecting asset performance under a large number of interest rate and equity return scenarios. Each scenario represents a random selection of future returns. But random does not mean purely random. Each scenario is an intrinsic whole, where for example, we allow for the fact that high shortterm interest rates have historically correlated with poor equity market returns. As another example, we allow for the fact that the yield curve has completely inverted only about 1% of the time over the last 50 years. A great many such consistencies are built into the projection software, so that when a user runs 1000 scenarios, the result is a highly scientific view of likely results. Output can be analyzed in terms of