c. myblog

March 22, 2012

The Buzz On Small Business Lending

There has been a lot of excitement in the credit union industry as of late about the potential positive impact that proposed legislation on small business lending could have on the industry’s search for new sources of loan growth.  According to a recent Wall Street Journal article, Sen. Mark Udall (D-CO) plans to file legislation […]

March 16, 2012

What Is Your Alternative To OTS For Prepayment Information?

With the OTS having been merged into the OCC, credit unions are looking for alternative sources for loan prepayment information to use when quantifying interest rate risk (IRR).  Unfortunately, there are a limited number of publicly available sources for this information.  The Securities Industry and Financial Markets Association (SIFMA) is one publicly available source that […]

March 12, 2012

Making Sense of Economic Change

Every day we’re faced with new statistics that may shape our thoughts about where the economy is and where it’s going.  For example, household borrowing grew in 2011 and, as recently as January, was increasing at an annual rate of 8.6%.  GDP has been increasing for the last three quarters and unemployment is decreasing.  But […]

March 1, 2012

How Do You Know Your Modeling Assumptions Are Right?

Interest rate risk modeling requires the user to make assumptions about member and management/board behavior.  For example, some members will pay back their loans ahead of schedule and the rate of prepayment will increase if rates fall and decrease if rates go up, especially on mortgage-related products.  Likewise, the incentive for members to move some […]

February 24, 2012

Evaluating Investments

This post is a continuation of Investing At “Record” Low Rates… published February 10, 2012. Investments with complex optionality are increasingly being added to credit union investment portfolios.  As such, it is critical that credit unions have a solid understanding of what they may be purchasing, before the transaction is executed. First, make sure your […]

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