Search: "yield curve"

Forward Curve Back Testing

Our last blog, NEV Does Not Equal NII, drew questions from some of our readers. Specifically, some questioned our comment about a forward curve’s inability to predict interest rates. This is fair, since some in the industry seem to treat it as a foregone conclusion that a forward curve will come true. We hear a […]

How is Your Modeling Positioned to Capture NCUA’s “Chief Concern”?

In the most recent NCUA Economic Update, John Worth (Chief Economist, NCUA) outlined NCUA’s chief concern regarding the impact of a changing rate environment, given an interpretation of recent Federal Reserve comments and data analysis. See below for a key quote from the video: “If the increase in short rates is larger than the increase […]

NCUA’s Interest Rate Risk Questionnaire – Starting the Conversation

More institutions are being presented with NCUA’s Interest Rate Risk Questionnaire in advance of examinations and being asked to fill them out. During the preparation for an examination, this may seem like the last thing a busy management team should be concerned with, but it should be taken as an opportunity to refresh credit union […]

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