Search: "interest rate risk"

Three Financial Tests Credit Unions Are Running Today

The following blog post was written by c. myers and originally published by CUES on December 3, 2018. One of the advantages of running thousands of what-ifs for hundreds of credit unions each year is that it provides a window into what is on the minds of credit union executives.  The what-if scenarios that are being requested […]

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 […]

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 […]

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 […]

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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