Search: target market

Holding Long-Term Investments And/Or Mortgages?

NCUA’s recent Supervisory Focus for 2013 (13-CU-01) stated, “Examiners will evaluate your credit union’s ability to mitigate interest rate and liquidity risk, especially where there are high levels of long-term assets funded by short-term, less stable funds.” We encourage credit union leaders to make it a habit to continuously review emerging market trends and thoroughly […]

Data Mining Could Lead To Revenue Streams

Marketing isn’t what it used to be.  As with most disciplines, marketing has evolved rapidly in this technological age.  Credit union marketing strategies need to evolve, too.  It has been reported that Amazon’s conversion to sales from recommendation could be as high as 60%. Why?  Because they understand how to mine their customer data and […]

Excerpt: The New IRR Rule – Be Prepared

The National Credit Union Administration recently issued its final rule requiring “federally insured credit unions to develop and adopt a written policy on interest rate risk management and a program to effectively implement that policy, as part of their asset liability management responsibilities.  The interest rate risk policy and implementation program will be among the […]

What Is Your Alternative To OTS For Prepayment Information?

With the OTS having been merged into the OCC, credit unions are looking for alternative sources for loan prepayment information to use when quantifying interest rate risk (IRR).  Unfortunately, there are a limited number of publicly available sources for this information.  The Securities Industry and Financial Markets Association (SIFMA) is one publicly available source that […]

Evaluating Investments

This post is a continuation of Investing At “Record” Low Rates… published February 10, 2012. Investments with complex optionality are increasingly being added to credit union investment portfolios.  As such, it is critical that credit unions have a solid understanding of what they may be purchasing, before the transaction is executed. First, make sure your […]

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