c. myblog

January 27, 2012

More Certainty Over The Direction Of Interest Rates?

Following the January 25th meeting, the Fed released a forward-looking rate forecast.  This forecast shows the range of predictions made by Fed officials about the level of short-term interest rates in the fourth quarter of 2012, 2013 and 2014.  The forecast also estimates when the Fed expects to begin raising short-term rates, and describes what […]

October 20, 2011

Record Low 10-Year Treasury Rates and Net Interest Margin

On September 22nd, the 10-year Treasury Rate touched another historic low with a yield close to 1.7%.  This is a critical measure, as many credit union assets are priced off of the longer end of the yield curve.  There are many factors contributing to the low yield, including: The Fed’s decision to sell some shorter-term […]

September 15, 2011

Auto Lending: The Concerning Slow Decline

Traditionally, auto loans have been the “bread and butter” of credit union loan portfolios.  However, 1st mortgages have claimed that honor with short- and long-term trends showing continued declines in auto loans as a percent of total loans for the credit union industry’s balance sheet.  Auto loans have been consistently decreasing from roughly 40% of […]

September 1, 2011

Are New Members Different?

These are challenging times for financial institutions but it’s tough for individuals too.  Setting aside employment woes, managing personal finances has become especially difficult with the stock market in flux and dismal returns on deposits.  As financial institutions shift strategies to adapt to the environment, customers are reacting by looking for a better deal.  A […]

August 19, 2011

Farewell To Borders: No Business Is Immune

No business is immune to the pressures of external forces and changing consumer behaviors.  At the end of July, after being in business for over 40 years, Borders notified its 1.6M rewards customers that it would be closing its doors for good. According to Borders’ 2010 annual report, the company had: 642 stores 16,400 employees […]

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