c. myblog

March 22, 2013

“My investment portfolio is not working for me!”

This is a statement heard more frequently in the past couple of years.  For those thinking it, here are some questions worth considering. Question 1:  Is my lending process working for me? The economy shows glimmers of improvement, with home values up and consistent increases in new auto sales as some evidence.  Before turning to […]

December 13, 2012

What If The Fed Rate Projection Is Right?

This is a question credit unions should try to answer as part of their ongoing long-term forecasting process.  The FOMC reaffirmed on Wednesday (December 12) that they do not anticipate raising rates until 2015. Source:  Federal Reserve So what happens to earnings and net worth if rates stay at historic lows for two more years, […]

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 […]

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 […]

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