Insights from Catalyst

Welcome to Catalyst Corporate's blog, where thought leaders share their insights on news, trends and events. Have a blog idea? Contact the Communications Team

  • The Basics of Backtesting

    December 18, 2020 | Theresa Batoon

    At one time or another, you’ve probably heard the term “backtesting” from your auditors or ALM provider. Backtesting is simply the comparison of your actual income statement to your projected income statement. This technique can provide valuable insights into the accuracy and reasonableness of your interest rate risk model.
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  • Home Sweet Home…Office? Assessing Enterprise Risk Beyond CU Walls

    December 11, 2020 | Brad Cooper

    The concept of working from home was foreign to many until March 11, 2020, when the World Health Organization officially declared the COVID-19 outbreak a pandemic. Nine months later, what was once a culture shock has slowly become “normal." However, working from home comes with its own set of risks. For this reason, it’s important credit unions recognize – and account for – these various types of risks.
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  • What Will it Take for Mortgage Rates to Rise?

    December 07, 2020 | Zane Wilson

    You’ve likely seen articles predicting that mortgage rates will rise in 2021. The rationale for these predictions is complex, but when I think about the direction of mortgage rates, there is really only one major factor I consider: economic growth. However, for mortgage rates to increase, one final variable must be realized: the 10-year Treasury yield needs to rise above one percent and remain within a range of 1.33-1.60 percent.
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  • Examining Investment Decisions Based on the Yield Curve

    November 30, 2020 | Casey Peterson

    The year 2020 has been like no other, and the financial services industry – like most – has felt its share of turmoil during the COVID-19 pandemic. Credit unions have endured a nationwide lockdown, modified branch activity and accelerated timelines for digital solutions and online banking. Over the last eight months, two major economic byproducts have also emerged: 1) deposit/share growth and 2) record low interest rates.
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  • The (Tur)Key to Understanding Asset Liability Management

    November 23, 2020 | Maryssa Crews

    Asset liability management (ALM) can be somewhat daunting. You may be wondering, “What is the best way to allocate the balance sheet to minimize risk and optimize earnings?” To fully grasp ALM, you need an understanding of different types of risk and how the balance sheet composition affects those risk levels. With the holiday season fast approaching, it may be helpful to compare risk assessment tools to a Thanksgiving feast.
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