In a previous napkin math video, we demonstrated an easy way to approximate the change in value when interest rates increase or decrease for bullet and amortizing products. This latest entry in our Napkin Math video series shows how you can use that same approach to calculate how value has changed in the current rate […]
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 […]
With market interest rates on the rise for the first time in nearly 15 years, comes a host of new considerations for the credit union industry. Among them is an understanding that many Interest Rate Risk (IRR) policy limits are in fact a moving target. Whether rates stay put, continue to increase, or possibly head […]
Imagine brainstorming various ideas with your team. You want to see the financial impact fast! We created our Napkin Math Video Series to help keep the conversation moving. The primary purpose of the videos is to show simple math that people can do on a napkin to understand ballpark financial performance. There are five videos […]
Performing what-if analysis is an integral part of both the A/LM and budget processes. When used correctly, what-if analysis is a powerful way for decision-makers to understand the impact of items under consideration in real-time. The challenge is that often people dive right into modeling and results, producing a less than optimal process. Consider applying […]
