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

  • 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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  • SOFR So Good, but Transition from LIBOR Will Come with Risks…

    November 16, 2020 | Dan Abdill

    In the U.S., LIBOR’s “heir apparent” is the Secured Overnight Financing Rate (SOFR). Regardless of the chosen benchmark, transitioning from LIBOR has its risks. In July 2020, the Federal Financial Institutions Examination Council (FFIEC) – of which the NCUA is a member – released its “Joint Statement on Managing the LIBOR Transition.” The statement enumerates the types of risk examiners will focus on but does not endorse a specific replacement benchmark.
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  • FOMC Guidance Sets New Tone for Future Rate Forecasting

    November 09, 2020 | Jonathan Jackson

    In late August, a new update to FOMC policy framework was introduced which included a major shift in strategy for potential rate hikes. In an effort to provide further clarity, the FOMC issued explicit guidance, reinstating its commitment to leaving rates unchanged until the new set of economic parameters is met. Here's a closer look at the new criteria.
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