4 minute read – We often see that people focus on investment labels (e.g., 3-year callable bond, 5-year callable bond, or 15-year MBS) when making investment decisions. This blog contains food for thought as you consider different investment alternatives. As we have said many times, your individual investment decisions should always be made in light … Continued
3 minute read – Banking as a Service (BaaS) is gaining more attention as FinTechs and non-financial companies look for opportunities to provide financial services to their customers without having to become a financial institution. The Apple Card is a common example of BaaS where the consumer does everything through Apple, and Goldman Sachs handles everything on … Continued
4 minute read – Every day, leadership teams are evaluating what to do with all their liquidity. Discussions often include setting aside dollars for investment purchases, holding more mortgages, and being positioned to meet pent up consumer loan demand. But before plans are put into motion, help paint a picture for your team by using … Continued
6 minute read – Has your team had a chance to take a close look at your ALM modeling recently? COVID has certainly created a lot of distractions, so it may not have been at the top of your ALCO’s priority list. However, this low-rate environment has created some unique pressures on EVE/NEV and NII … Continued
4 minute read – A few months ago, we posted an investment strategy blog, touching on the importance of understanding risk versus return trade-offs when evaluating high-premium investments. As investments carrying a premium continue to be evaluated, we thought it would be worthwhile to circle back, considering purchase premiums are not exclusive to the investments. … Continued
3 minute read – An organization that actively creates the right talent is an organization that can leverage their deep thinking, creativity, and flexibility to create a competitive advantage and deliver on the value proposition – all of which leads to higher ROA. Successful business executives have written volumes about the importance of having and developing … Continued
5 minute read – When optimizing earnings, choosing a range of environments to plan on is an important strategic decision for any leadership team. Focusing on a range of expected rates, rather than a single rate environment, can help leaders embrace uncertainty – expanding information and encouraging discussions on actions that can improve earnings across … Continued
5 minute read – As many leadership teams are in the process of revamping lending to be more consumer friendly and productive in a digital world, investment portfolios are often being asked to play a bigger role while lending builds the desired momentum. In an environment where many are trying to eke out every bit … Continued
6 minute read – Many financial institutions are preparing for earnings pressure to continue in 2021. Short-term rates near zero and record low long-term rates are squeezing net interest margins. Gains on mortgage sales have helped, but that level of income can’t continue forever. Understanding where your financial structure is making money, losing money, or … Continued
3 minute read – Do you feel like your business is moving faster than the talent? Having the right talent that grows and changes with the business can feel elusive, but conscious effort and focus in this area can create a competitive advantage. It feels as though the industry is moving at warp speed, given … Continued
