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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July 12, 2021 | CSS Advisors
Conversation around interest rate derivatives has slowly gained more traction within the credit union industry over the last year. And the NCUA Board approved a final rule that modernizes the proposed derivatives rule, making it more of a principles-based approach, while retaining essential safety and soundness components.
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June 21, 2021 | Kevin Schlangen
A common headline the last year has been the huge influx of liquidity on credit union balance sheets. The question now is what to do with all those extra funds…specifically, where to place them in this historically low rate environment? With so many factors to consider, how do you choose the best course of action?
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June 08, 2021 | Theresa Batoon
Weighted Average Life (WAL) can help credit union investors evaluate how long it may take to receive approximately half the outstanding principal and measure interest rate risk associated with fixed-income securities. For these reasons, it’s important to understand how WAL is calculated and examine some of its uses, as well as its limitations.
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May 28, 2021 | Jonathan Jackson
Recent strong asset growth has diluted capital ratios for many credit unions. Historically, capital positions have been rebuilt by maximizing earnings and shrinking assets. However, one alternative strategy available to Low Income Designated (LID) credit unions is to issue secondary capital.
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May 10, 2021 | Cassandra Kowieski
Nearly halfway into 2021, we are still in the throes of a pandemic-induced low-rate environment, but there are signs of brighter days, growth and a steepening yield curve. Is now the right time to consider servicing mortgages, and if so, what should a potential mortgage servicer consider, given the current market?
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