Accolade Asset/Liability Advisory Services

WEBINAR : Mid-Year Economic Outlook

Join the Accolade team for our economic and rates outlook for the second half of 2023.

Managing Liquidity: Exploring Options for Loan Demand and Deposit Run-Off through External Funding

Credit unions are currently facing liquidity challenges as loan demand remains steady and deposits decline. In this article, we will provide an overview of strategic considerations when evaluating liquidity options, given the uncertainty of future interest rates.

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Accolade Market Update - September 28, 2023

In this week's market update video, Phil does a deep dive on US labor demographics and how it influences the structure of interest rates. We wrap up with a look at current borrowing rates and investment opportunities for credit unions. JD discusses how the increased relative value in Agency CMOs could give credit union investors something to look at besides CDs.

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Economic Outlook

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Managing Liquidity

Exploring Options for Loan Demand and Deposit Run-Off
Market Update

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A wholly-owned CUSO of Corporate One Federal Credit Union since 2007

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Accolade Advisory was founded in 2007 with the mission of strengthening credit unions by providing financial advice and tools. We offer reporting tools to provide insight, knowledgeable staff to facilitate asset and liabilitiy committee (ALCO) meetings, and dedicated investment advisers to provide portfolio management.

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News & Events

Managing Liquidity: Exploring Options for Loan Demand and Deposit Run-Off through External Funding

Credit unions are currently facing liquidity challenges as loan demand remains steady and deposits decline. Typically, loan demand remains high during the summer months, while members withdraw some of their deposits to fund vacations. In this article, we will provide an overview of strategic considerations when evaluating liquidity options, given the uncertainty of future interest rates.

Taking A Closer Look at Mortgage Extension in Credit Union Balance Sheets

The combination of persistently high inflation and the Federal Reserve’s historically quick rate tightening has lifted longer-term yields and slowed mortgage prepayments, lengthening assets at many credit unions. With 30-year mortgage rates currently near their highest levels in the past twenty years (currently revisiting the range of 7.00%+ levels, initially breached last fall), virtually all mortgages on credit union’s books are exhibiting very low prepayment speeds.

Market Reacts to Recent Fed Meeting

While the markets look forward for the direction of the economy, the Fed is still looking backward for hard evidence that inflation has been controlled. If we see additional data that indicates economic growth is reaccelerating, the prospects for a pause in rate hikes will certainly diminish. Until economic data forms a consistent narrative, we can anticipate that higher levels of volatility will persist.

Auto Lending Trends 2023

Accolade has compiled some data around auto lending trends that may help provide context for setting asset allocation in 2023. While many of the data trends we’re seeing are troubling for auto lenders, we are likely still in the normalization phase from the incredibly low levels of credit issues that we saw through the pandemic period.

NEV Supervisory Test Update – September 2022

The NCUA Supervisory Test is intended to be used to measure asset sensitivity to rate changes by applying standardized market values to the credit union’s non-maturity shares. In early September the NCUA updated its interest rate risk supervisory framework to address concerns about the test's results.

Liquidity Crunch: Ideas to Stay Afloat

Now that we find ourselves in a more attractive rate environment credit unions have a golden opportunity to improve net interest margins and loan-to-share ratios – if only they had the liquidity to support it. This article offers ideas to help your credit union meet liquidity targets.

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