First, the ALM service incorporates a key ratio analysis, designed to help credit unions identify areas for improvement with regard to pricing deposit accounts and loan products. This analysis also assists credit unions in managing expenses associated with the day-to-day operations of a financial institution.
Second, the advisors review the interest rate risk profile obtained from the ALM analysis to determine the prudent amount of rate risk for each credit union's portfolio. This practice enables advisors to target the highest yielding area of the yield curve, without exposing a credit union's balance sheet to any undue risk. In a nutshell, it's all about managing risk and return.
Finally, Catalyst Strategic Solutions' staff of investment professionals monitors the direction and outlook for interest rates and stays abreast of spreads and yields on the various investment alternatives. These practices enable them to make the most profitable investment recommendation within the current interest rate environment.