c. myblog

October 3, 2018

Does Analyzing Business Decisions Through Volatility Make Sense?

A strong indicator of expected trends and opportunities credit unions are exploring is often found in the type of what-ifs requested from our clients. One of the many what-if requests we are getting is addressing deposits leaving, especially high-balance money markets. This pressure on liquidity, combined with other changes in the environment, is resulting in […]

September 19, 2018

Is Your Certificate Promotion Doing What You Want?

As liquidity and cost of funds pressures continue to be a focus, credit unions are exploring possible funding options within the liquidity toolbox. Among them, certificate promotions which, in this rate environment, are becoming a more frequently used tool. On the surface, attracting liquidity through certificates seems straightforward. Offer a competitive rate, promote it, and […]

September 12, 2018

Rewards in Risk/Reward Trade-offs

Since market rates have been increasing, more focus is being put on balance sheet optimization. It’s important to remember that many types of analyses, such as NEV and NII volatility, focus on the risks when viewed in a rising rate environment. It’s important to understand the risks, but not in a vacuum. Remember to view […]

September 5, 2018

Managing Operating Expenses When Your ROA is Under Pressure

Some credit unions are feeling margin pressure as deposit rates are starting to rise. Pressure from the evolving competitive landscape is an increasing challenge as well. The squeeze in margin is starting to hit earnings, and is impacting expectations for earnings as we look ahead to 2019 and beyond. So as we enter the fall, […]

August 8, 2018

Don’t Forget to Look Down

For a very long time, asset/liability management (A/LM) and managing interest rate risk (IRR) were almost exclusively about what would happen if market rates rose.  When rates were near zero, risk limits that looked down to negative rate environments did not receive much consideration.  But that’s not the case anymore.  The industry needs to dust […]

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