Displaying 1 - 10 of 22 results.
December 11, 2024
The NCUA’s May 2021 updates to 12 CFR §703.103 have empowered credit unions to use costless collars as a tool for managing interest rate risk. These strategies are permissible under…
View Article →November 7, 2023
Credit unions are increasingly utilizing derivatives to manage risk, with industry interest and adoption growing since the NCUA streamlined rules surrounding hedging regulation in June of 2021. The current NCUA…
View Article →August 4, 2023 | Ask ALM
Finding cost-efficient sources of funding has become a growing challenge for financial institutions. Banks and credit unions have both seen accelerated deposit outflows as well as a substantial shift in…
View Article →January 6, 2023 | Ask ALM
Many institutions have experienced significant increases in the value of their mortgage servicing rights (MSR) assets this past year, making MSR hedging a timely topic. MSR assets generally increase in…
View Article →October 25, 2021
Key Takeaways: Understanding swap use in today’s landscape Remaining competitive in the lending space despite a flatter curve Maintaining a lower cost of funds in a rising rate environment Protecting…
View Article →August 30, 2021 | Ask ALM
Depositories hedge for a variety of reasons, including locking in potential profits, managing risk, attracting more business or extending the duration of their liabilities. At ALM First, we’ve always encouraged…
View Article →June 15, 2021 | Ask ALM
As if hedging mortgage risk wasn’t complicated enough, 2021 has brought some interesting updates and trends—the outcome of which could make hedging and investing in mortgage debt more challenging. Higher…
View Article →March 16, 2021 | Ask ALM
An opportunity for federally chartered credit unions to gain greater flexibility in managing interest rate risk and making profitable decisions. Key Takeaways The preapproval process for derivative use would be…
View Article →October 26, 2020
An opportunity for federally chartered credit unions to gain greater flexibility in managing interest rate risk and making profitable decisions. Key Takeaways The preapproval process for derivative use will be…
View Article →September 28, 2020 | Ask ALM
Retaining the mortgage servicing rights (MSR) when mortgages are sold can potentially bring substantial returns on capital for institutions that have competitive advantages in servicing mortgages. However, since MSR assets…
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