c. myblog

August 25, 2016

What-Ifs Help the Budget Process

Testing ideas and running what-ifs is a powerful way for decision-makers to understand the impact of decisions under consideration in real-time (for more on this, please refer to our blog, Has your ALM technology Emerged from the Dark Ages?).  The power of what-ifs can also be applied to the budgeting process, and help link decisions […]

August 18, 2016

Long-Term CDs – Questionable Cost of Funds Protection

The 10-year Treasury closed below 1.40% 3 days in July! The flattening of the yield curve has many folks worried about further pressure on net interest margins. Some, though, are hoping to extract a benefit by locking in long-term funding at historically low interest rates. As an Asset/Liability Management (A/LM) strategy, this approach employs the […]

August 5, 2016

Interest Rate Risk in an Auto Loan – Really?

The competitive landscape for auto loans has fundamentally changed over the last 15 years.  There are more non-traditional lenders vying for autos and non-credit union lenders have been saturating the indirect lending market. These trends put pressure on pricing and take a bite out of the auto lending pie.  As a result, financial institutions are […]

July 6, 2016

NCUA – Rethinking NEV

It’s no secret that the NCUA is planning to implement new guidance for net economic value (NEV) testing this year. From NCUA’s recent open meeting, some key elements of the new guidance include: Non-maturity deposit (NMD) values will be capped at a premium, not to exceed 1% in the current rate environment. NMD benefit will […]

May 12, 2016

5 Things Not To Do With Your Investment Strategy

1. Don’t manage investments in a silo. Investments are an integral component of the business strategy. Investment strategy should be developed in light of a credit union’s unique financial structure and strategic objectives. Understand how the whole financial structure works together. For example, if the lending portfolio includes a significant amount of long-term loans, investments […]

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