c. myblog

November 1, 2017

Recent Uncertainty Highlights The Importance of Evaluating Strategic Net Worth Requirements

The rapidly changing competitive environment and recent natural disasters are reminders of the importance of evaluating strategic net worth requirements. A key component to understanding strategic net worth requirements is taking a deliberate approach to understanding aggregate risk.  In a previous blog post we outlined an approach to help with this process. Two types of […]

June 29, 2017

Strategic Budgeting/Forecasting Questions: Linking the Appetite for Risk

The fifth entry in our 6 blog series about Strategic Budgeting/Forecasting Questions addresses the institution’s appetite for risk and how it should connect to the budget or forecast. Question 5 – How is the budget and forecasting linking to our appetite for risk? A few short months from now, every credit union will be going […]

April 19, 2017

HELOC Considerations in a Rising Rate Environment

With the recent increase in short-term interest rates, specifically Prime rate, many credit unions are taking a closer look at the impact of higher rates on their HELOC portfolios. Anything is possible when it comes to future market interest rates but a continued increase in Prime means members will have higher interest rates and higher […]

March 23, 2017

Interest Rates Have Risen – Now What?

The 3-month Treasury rate has moved more in the last 8 months than it has in the preceding 8 years.  For many who think of A/LM in a time of rising rates, it can be time to calibrate pricing strategies, non-maturity deposit withdrawal assumptions, or loan prepayment speed assumptions.  Others may begin to consider strategic […]

March 15, 2017

Investment Strategy: Consider Income Volatility vs. Yield

Increase in loan-to-asset ratios along with the potential for higher market interest rates and tighter liquidity heighten the importance of the investment strategy and its role in supporting a credit union’s overall business strategy. Understanding income volatility versus yield can be valuable in establishing investment strategy. Below we are illustrating the point using two investment […]

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