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

  • Focusing on the ‘Known Knowns’ in a Low Rate Environment

    August 03, 2020 | Al Schiliro

    “Rates are too low” is a statement that seems to be echoing among investors in the current economic environment. Another popular phrase we’ve heard across the industry is “The economy will turn around and rates will go back up.” Behavioral finance might define such phrases as “anchoring” – the common human tendency to rely on one piece of information or a cognitive bias toward a psychological benchmark.
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  • Reducing Overnight Cash to Enhance Earnings

    July 27, 2020 | Casey Peterson

    Through the second quarter of 2020, credit unions experienced an increase in liquidity from slower lending and increased shares. Additionally, credit unions are now experiencing a lower net interest margin. One of the culprits is the mere 0.08 percent they’re earning on overnight cash balances, compared to almost 1.50 percent at the end of 2019.
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  • Calculating the True Cost of Your Deposits

    July 20, 2020 | Andrew Gelsomini

    Although we are living in unprecedented times, our economic environment does feel remotely familiar. It was during the Great Recession that we last experienced such historically low rates, and even though 10 years have passed, many of us still remember it all too well.
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  • Fannie, Freddie and the Pandemic

    July 13, 2020 | Dan Abdill

    For decades, Fannie Mae and Freddie Mac have helped keep the mortgage markets functioning. Their conservator, the Federal Housing Finance Authority (FHFA), allowed the two mortgage giants to adapt their policies to cope with the unique circumstances caused by the COVID-19 pandemic. What do the changes mean for investors in the agencies’ debt and MBS?
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  • Managing the Risk of Faster Prepayments in Amortizing MBS

    July 06, 2020 | Jonathan Jackson

    Credit union balance sheets look much different than they did at the beginning of 2020. As a result of government stimulus and the economy entering recession, deposit growth exceeded expectations through the first half of the year. High deposit growth combined with low loan demand resulted in excess liquidity on most credit unions’ balance sheets.
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