Skip to main content



Measuring Interest Rate Risk: NEV

NEV is one of two measurements that ALM modeling uses to assess your interest rate risk. NEV stands for net economic value and is sometimes referred to as the economic value of capital at risk. NII represents net interest income, sometimes referred to as the income simulation. In this article, we’ll define NEV and discuss examples of how to read the measurements.

Read More

Understanding Interest Rate Risk

ALM modeling is used to gain insight into the potential impacts of changing interest rate environments on both the credit union’s equity or capital as well as its profitability or ability to generate earnings. In short, ALM modeling is for measuring interest rate risk.

Read More

Measuring Interest Rate Risk: NII

NII is another measurement that ALM modeling uses to assess your interest rate risk. Net Interest Income (NII) is a bit easier to understand than its counterpart, NEV, because the timescale is defined.

Read More

Pool determination

One important but often overlooked aspect of an ALLL calculation is what loans should be grouped together to determine your loan loss calculation. This is called “pool determination.”

Read More

Rates Steady as Stimulus Funds Begin to Settle

Rates remained steady through the holidays. Stimulus checks arrive for American consumers as jobless claims rise and a COVID variant arrives in the US. 

Read More

Yields Decline on Lower Volume As Holidays Approach

Rates closed slightly higher this week after trading in a narrow range throughout the week.

Read More

Lower Yields Result from Fiscal Stimulus Stalemate

Yields declined across the curve this week, reversing last week's yield curve steepening and sending the closing yield on the 10-year Treasury below 90 bps..

Read More

Lackluster employment report increases stimulus bets

The yield curve steepened substantially this week, with the 10-year note adding eight bps of yield, returning to the previous peaks hit in November and June...

Read More

Has the CD Market Become Uninvestable?

CDs have long been the bedrock of credit union investment portfolios, particularly for small and medium-sized institution.

Read More

Rate range bound as market awaits monthly payrolls

Rates have remained mostly range bound as risk-on assets have approached record highs over the last week...

Read More

|<  <  1 2 3 4 5 6 7 8 9 10 ...  >  >| Pages: 3 of 11