Insights from Catalyst
Welcome to Catalyst Strategic Solution's blog - Insights from Catalyst. Here, read what thought leaders have to say about credit union news, trends and industry happenings. Have a blog idea, want to contribute or need to know more? Contact the Communications Team.
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December 13, 2022 | Jonathan Jackson, CFA, FRM
Investing in subordinated debt may offer an attractive yielding asset for your credit union’s balance sheet. Prior to investing in subordinated debt, however, it is important to perform thorough due diligence. Five key areas can help your subordinated debt investment analysis: growth trends, loan quality, earnings capacity, liquidity and planned use of the funds.
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September 01, 2022 | Paul Shorkey, CFA, FRM
Over the second quarter of 2022, interest rate risk has seen pronounced movement, with many credit unions concerned about the impact on the NEV Supervisory Test. The 0.75% increase in the Fed Funds Target Rate at the June Federal Open Market Committee meeting, due to a hot CPI print, came to the markets somewhat unexpectedly (another followed in July).
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August 19, 2022 | Mark DeBree, CFA
Is your credit union considering an investment in Subordinated Debt? If so, carefully evaluate your potential issuers. Five key areas can help determine their strength: growth trends, loan quality, earnings capacity, liquidity, and planned use of funds.
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June 24, 2022 | Casey Peterson
The Federal Open Market Committee (FOMC) raised the Fed Funds rate by 75 basis points on June 15 in an aggressive move to tamp down inflation that has weaved its way into the economy. The FOMC also signaled they may increase the overnight target rate to a range of 3.00-3.50% by the end of the year.
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June 06, 2022 | Paul Shorkey, CFA, FRM
Whether it’s at the gas pump or in the supermarket, consumers are already feeling pressed by higher prices on daily necessities. What will this mean for your deposit offering rates over the same period? Given the upcoming credit and interest rate challenges, selective credit lending and a well-balanced investment ladder could help stabilize the anticipated uncertainty.
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