News & Insights
I attended the Young Professionals Conference at the Hyatt Regency in Frisco, Texas, May 9-11. The YP Conference, hosted by Cornerstone Credit Union League (CCUL), was my first conference to attend, so I didn’t know what to expect. I was optimistic that I was going to bring many insights back to the Marketing team at Catalyst Corporate, while also learning leadership techniques I can implement in my everyday life.
With the first quarter of 2022 in the books, analysts at Catalyst Strategic Solutions have seen a large uptick in credit unions seeking to issue subordinated debt. The specific business case for each issuer has varied, but the core underlying drivers have been consistent.
Bonds can help transform your portfolio, but they are not risk-free. Choosing a lower coupon bond over an above-market coupon may not always be the best strategy. Look into one comparison Al Schiliro, a Catalyst Corporate Senior Investment Officer, conducted and the results may surprise you.
The rise in interest rates has caused the values of mortgage portfolios and long-term investments to decline. Some credit unions and board members have said, “Maybe we should stop or slow down our mortgage lending.” My answer to them is always the same: Wait, let’s talk this through first.
Interest rates on investments have risen substantially since the beginning of the year, particularly on maturities of five years or less. The two-year Treasury yield is up more than 70 basis points, and the five-year Treasury is up more than 50 basis points from year-end 2021 levels. What does this mean for your investment portfolio?
In January, the National Credit Union Administration (NCUA) outlined their 2022 supervisory priorities, which focus on “areas that pose the highest risk to credit unions, credit union members and the National Credit Union Share Insurance Fund.”
With the Federal Reserve signaling to markets that inflation fighting – rather than a focus on full employment – is the imminent mandate, the specter of rising interest rates now looms. High CPI numbers have caused this shift. But is the inflation threat real, given the supply chain effects of the pandemic and long-term rates that remain at levels well below the prior rate cycle?