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Market Insights – April 16, 2018
The economic news of the week was centered around the inflation landscape, with updates on consumer prices, producer prices and import costs.
Market Insights – April 9, 2018
In its inaugural week of publication by the New York Federal Reserve, the SOFR rate traded with a range of 9 basis points, as market participants figured out how to price the new rate.
Increase Your FX Penetration and Better Serve Customers
About 95% of bank accounts outside the US are denominated in some currency other than USD. Yet the percentage of wires going to international destinations in a foreign currency is in single digits.
Market Insights – April 2, 2018
The last trading week of the first quarter came to a close with little in the way of economic updates as the holiday-shortened week ended on Thursday afternoon in advance of the Easter holiday.
Market Insights – March 26, 2018
As was widely expected, the FOMC voted to raise their target rate for federal funds by 25 basis points on Wednesday, to 1.75%.
Market Insights – March 19, 2018
The swap curve continues to flatten, led by a relatively quick increase in the front-end of the curve, while longer term rates have been remarkably stable.
Market Insights – March 12, 2018
Labor force rose by the largest amount in nearly a decade, gaining over 800,000 last month which may indicate that there is still room for the labor markets to tighten further.
Market Insights – March 5, 2018
It was an interesting week for market watchers as Mr. Powell made his first remarks to Congress in his position as Chairman of the Fed.
Market Insights – February 26, 2018
It was a relatively light week for economic data and flows were largely driven by a heavy debt issuance calendar.
Market Insights – February 20, 2018
The economic data calendar was busy last week led by a stronger than anticipated CPI report.
Market Insights – February 12, 2018
Equity markets were incredibly volatile last week, with stock prices swinging wildly in sometimes frantic trading.
Market Insights – February 5, 2018
Last week the market reminded investors that sentiment and momentum are powerful forces that can change on a dime.
Market Insights – January 29, 2018
The sell-off in rates continues to gain momentum on the back of mostly positive economic data.
Going Long: Four Ways to Mitigate the Risk of Long-Term, Fixed-Rate Lending
For any financial institution that wants to use derivatives to mitigate the interest rate risk associated with longer term, fixed-rate lending, the path forward can be daunting.
A Practical Guide to Using Receive-Fixed Interest Rate Swaps to Reduce Asset-Sensitivity
Banks use several techniques to convert some of their asset-sensitivity to current period earnings. Traditional non-derivative approaches take time and can create capital implications for the bank.
The FASB Approves Proposed Changes to Hedge Accounting
This bulletin provides an overview of the proposed changes to Accounting Standards Codification (ASC) 815, Derivatives and Hedging that are relevant to financial institutions.
Asset-Sensitive Financial Institutions – Improved Cash Flow Hedge Accounting Standard
Financial institutions that are exposed to falling interest rates often enter into receive-fixed interest rate swaps to preserve their Net Interest Margin (NIM).
Liability-Sensitive Financial Institutions – Improvements to Cash Flow Hedge Accounting
Banks may alter their interest rate risk position by entering into pay-fixed, receive-floating interest rate derivatives to hedge their risk.
A Framework for Balance Sheet Risk Management
While FIs are willing to tackle their interest rate risk, often the focus is on a specific transaction, rather than an assessment of whether and how the transaction fits into the overall strategy.
Assessing the Impact of the FASB’s Proposed Changes to the Hedge Accounting Rules Under ASC 815