Ask ALM First
Which Best Practices Should Loan Buyers & Sellers Consider?
Our team has analyzed more than $2B in potential loan pools for sellers and more than $3B for buyers over the last several years. Through our Loan Transaction Network, we’ve also facilitated over $1B in transactions. This direct experience has given us unique insights...
Why Are Higher Rates Good News for Credit Unions and Banks?
It’s easy to focus on the immediate impact of rising interest rates on depositories’ bond portfolios. No one likes to see the value of their investments fall, even temporarily, but that is how present value math works. Instead of lamenting – “Rates went up and I...
What NCUA’s Proposed Rule on Derivative Use Could Mean for Your Credit Union
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 eliminated for Federal Credit Unions with greater than...
Should credit unions re-evaluate their Pre-Fund plan options?
The past year has challenged many credit unions with ongoing margin pressure and lost interest income, pushing executive teams and boards to seek out additional income sources. To provide relief to the hurdles credit unions face compared to their bank counterparts,...
How should I put my excess funds to work in 2021?
Fixed income investment managers are facing tighter asset spreads, making excess returns potentially elusive in 2021 as prepayment models struggle to estimate mortgage prepayments and reinvestment needs from new money and portfolio principal reductions continue to be...
Is That Yield Too Good to be True
Investment yield has become top of mind for many financial institutions and their investment managers lately due to the challenges of excess liquidity, net interest margin compression and a low-rate environment. However, it is critical to remember that simple measures...
What Best Practices Could Enhance Profitability in 2021?
Many depositories have already tightened where they are willing to lend as changes in delinquency reporting requirements, payment assistance programs and forbearance are making risk forecasting more complex and causing institutions to think twice about adding risk to...
How Can We Use Mortgage Servicing Rights to our Best Advantage?
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 typically have inherent price volatility, it...
Why Should Depositories Consider Loan Transactions Now?
When constructing a financial institution’s balance sheet, savvy financial managers understand the importance of evaluating all asset classes, including whole loans and loan participations. As many depositories find themselves with excess liquidity, this evaluation...
What is the Right Amount of Capital for Your Depository?
Capital is the core of an institution’s ability to grow and succeed yet answering the question of “How Much Capital Does Our Institution Really Need?” remains a common challenge for industry leaders. Performing a Strategic Net Worth Analysis enables institutions to...
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All investing is subject to risk, including the possible loss of the money you invest.
“ALM First” is a brand name for a financial services business conducted by ALM First Group, LLC (“ALM First”) through its wholly owned subsidiaries: ALM First Financial Advisors, LLC (“ALM First Financial Advisors”); ALM First Advisors, LLC (“ALM First Advisors”); and ALM First Analytics, LLC (“ALM First Analytics”). Investment advisory services are offered through ALM First Financial Advisors, an SEC registered investment adviser. Balance sheet advisory services are offered through ALM First Advisors. Financial reporting services, loan introduction services, and other special project services are offered through ALM First Analytics. Neither ALM First nor any of its subsidiaries provide legal, tax, or accounting advice.
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