Money Management

A collection of 36 posts

Money Management

What a Prolonged Conflict with Iran Could Mean for the Economy and Interest Rates

Have you watched the news lately? Even if you haven’t, it’s common knowledge across the globe at this point that the United States, along with Israel, are in direct conflict with Iran. In late February, multiple airstrikes and the elimination of Iranian supreme leader, Ali Khamenei, fueled the

Money Management

A Balance Sheet Snapshot: What 2025’s Final Quarter Trends Signal for 2026

As we close out 2025 and look ahead to the opportunities in 2026, I thought it would be helpful to reflect on recent balance sheet trends. The current market environment has prompted notable shifts across most credit unions. Overall, loan generation has been lower than the levels seen in the

Money Management

Do SBA Variable Rate Pools Make Sense for Your Credit Union?

When rates are high and you’re looking to lock in yield, fixed rate investments are generally the way to go, especially when rates are expected to fall. This has been the case since the end of 2023, and credit unions have been adding fixed rate investments ever since. Many

Money Management

The Fed's Dilemma

For anyone who follows economic or political news, the Federal Reserve and Fed Chair Jerome Powell have been in the headlines a lot more than any time in recent memory. After cutting rates by 100 basis points in 2024, the Federal Reserve has kept rates steady so far this year.

Money Management

Interest Rate Cycles: What They Are and Why They Matter

Interest rates are more than just numbers that affect your mortgage or savings account — they’re a powerful lever used to manage the entire economy. If you’ve noticed headlines about central banks “hiking” or “cutting” interest rates, you’re witnessing part of a broader economic phenomenon known as the

Money Management

The Importance of IRR Timing– How Credit Unions Are Facing Falling Rates

We’re all familiar with the adage, “timing is everything,” but when it comes to interest rate risk, that saying is especially true. Just like an inevitable scheduling conflict or a missed career training opportunity, think of interest rate risk as a measurement of a timing mismatch. As credit unions

Money Management

The Impact of Tariffs

Tariffs are making headlines as the Trump administration pushes forward with its promise to impose them on countries like China, Mexico, Canada and beyond. With retaliatory (aka, reciprocal) tariffs now in play, credit unions and their members are left asking…how will this trade war impact our financial standing? While

Money Management

ALM Risk in Focus

For those of you who need corrective lenses like I do – have you ever sat in the optometrist’s chair and struggled to decide which eye chart was more in focus? A or B, B or C? Sometimes, it is an obvious choice; then others, I feel that both are

Money Management

Better Budgeting: Aim for the Moving Target

The market is uncertain, budgeting season is wrapping up and after all the iterations are complete, it leaves me to wonder…why do this at all?  Why do we spend so much time getting the budget correct when there is so much uncertainty? The targeted growth could be wrong, the

Money Management

The Effects a Second Trump Term Could Have on the Economy

Fresh off his election victory on November 6, former president Donald J. Trump will once again take up residence at Pennsylvania Avenue come January. A second term for Trump could have several potential effects on the economy, interest rates and inflation. While predicting the exact outcome is speculative and can

Money Management

An “Old Faithful” Tool That Brings Simplicity to Investments & Liquidity

SimpliCD Case Study featuring Clearview FCU It’s no secret that financial management is a critical topic in today’s environment. That’s especially true for institutions like credit unions, which are not only in charge of managing their balance sheet, but also providing and preserving funds so that their

Money Management

Providing for Shade: 3 Concepts to Incorporate in Your ALM Modeling

Warren Buffett once said, “Someone’s sitting in the shade today because someone planted a tree a long time ago.” As Buffet’s quote reminds me, I would much prefer to leverage the efforts by others who came before me to my benefit. It just makes sense, doesn’t it?

Money Management

A Look Ahead: Rate Expectations

The market widely expects the Federal Reserve to begin cutting rates in September of this year, but the big question is, how much will they cut? Right now, Fed Fund Futures is pricing in a 100 percent chance of at least a 25 basis point (bp) reduction, and a 59

Money Management

ALM Management: Less is More or More is Less?

Growing up, I frequently heard the famous quote from Ludwig Mies van der Rohe, “Less is More”.  Maybe you did too. But for me, as a child, this phrase did not resonate with me. Why wouldn’t you put all the possible toppings on an ice cream sundae? It just

Money Management

Beyond the Platform: A Core Built for Partnerships, Not Just Processing

CU*BASE Core Case Study featuring Lesco FCU From processing transactions and balancing accounts to storing member data and making loan decisions, every single piece of credit union operations hinges on one thing – a core processing system. When viewed through this lens, it’s almost an understatement to say that

Money Management

Short-Term Maturities versus Long-Term Maturities: Why Now is the Time to Go Long

You may recall that in the years following the financial crisis, investors were forced to choose between bad and worse when it came to investment rates. That all changed when the Federal Reserve began their aggressive battle against inflation in March of 2022, and credit unions were finally able to

Money Management

Sallie Mae: A Low Effort, High Impact Student Loan Program You Don't Want to Skip Out On

We've all done it...skipping school is just a rite of passage for every student at some point or another. But as credit unions and providers of student loans, skipping out on easily earned income and an opportunity to give your members a chance at higher education is

Money Management

The Liquidity Awakening Has Begun

The recent rate environment has done wonders for many sleepy ALM programs, waking them up and inciting a resurgence of focus in the way credit unions monitor the interest rate risk exposure on their balance sheets. After 10 years in a static rate environment, this demanding rate cycle has forced

Money Management

Credit Union Investing 101

The financial world has become a bit…complicated…as of late. We all know the markets have been tumultuous in the face of a pandemic, bloated balance sheets, skyrocketing rates, rapid liquidity tightening, inflation and other economic factors. So, let’s take it back to basics for a bit – let’

Money Management

A Look Ahead: Expectations for the Markets & Economy in 2024

You’d think after nearly four years of pandemic-induced financial hysteria, we would’ve seen it all. But that wasn’t the case – not even close – as we continued to weather many storms in 2023. As 2024 closely approaches and we try to prepare ourselves for what’s next, we

Money Management

The Ingredients for a Strong ALM Program

When’s the last time you baked a cake for a special occasion? Or tried your hand at a new recipe for dinner? Even if you’re a pro in the kitchen, chances are you still probably utilized some of the basic ingredients, right? Otherwise, you might run the risk

Money Management

The Fed's Battle Against Inflation: Challenges or Opportunities?

Over the past year, we’ve seen an epic series of interest rate hikes by the Federal Reserve that began in March 2022. So much so, that some debate remains on whether we’ve seen the last rate hike or if the Fed will decide to raise one final time

Money Management

Goldilocks and the ALM Model

Do you remember the story of Goldilocks and the three bears? You know, the one where a little girl happens to find the home of three bears in the woods. She goes inside and eats their bowl of porridge. One of the bowls of porridge is too hot; one is

Money Management

Bank Term Funding Program: The Fed’s Solution to Liquidity

How can you solve a problem like liquidity? In today’s world, that’s a tricky question. Luckily, the Federal Reserve has a solution that might just interest your credit union. It’s called the Bank Term Funding Program (BTFP), and it’s a relatively new lending program available to

Money Management

Asset Liability Management: Interest Rate Risk Exposure Limits

When a credit union comes to me regarding updating asset liability management (ALM) policy limits, one of my first questions to them is: what is your risk tolerance? More often than not, I get the response: we are not sure, what does the NCUA say?. While it’s definitely important