Published in: CU Business 

Post-election stress may be affecting more than just the public; since the election, the U.S. Treasury bond market has sold off sharply, and the 10-year treasury interest rate has increased with it. As a result of increasing interest rates and a steeper yield curve, one may notice mortgage loans and other mortgage-related assets have had much slower projected prepayment speeds, and therefore increasing modeled durations. Such changes in the marketplace could have drastic impacts on modeled interest-rate risk results and, thus, may warrant a discussion of ALM metrics. READ MORE