The latest from James Lutter

Dec 2, 2019 - by James Lutter, PMA Funding

Negative interest rates – are they headed to the U.S.?

Both Japan and Europe have been experimenting with negative interest rates since the 2008 recession. With their economies experiencing anemic growth and inflation at subdued or deflationary levels, central banks ...

Oct 11, 2019 - by James Lutter, PMA Funding

2019 Market Disconnect – Deposit pricing strategy

As we enter the fall season and the 11th anniversary of the Lehman collapse, the overnight funding markets have come under stress.  The common themes behind the dislocation are corporate ...

Aug 1, 2019 - by James Lutter, PMA Funding

2019 mid-year review: Rates, deposits and their effect on financial institutions

The first half of 2019 was interesting on multiple fronts. After growing approximately 3 percent in 2018, GDP entered the first quarter of 2019 at a strong 3.2 percent. ...

Jun 12, 2019 - by James Lutter, PMA Funding

Wholesale remedies for your funding blues

For much of 2018, locking in deposits was top of mind for financial institutions. The general consensus was that rates would continue to increase throughout the year. In anticipation, financial ...

May 9, 2019 - by James Lutter, PMA Funding

Excess deposit bonds – Flexible form of collateral

As the economy continues to expand, financial institutions are again in the mode of seeking funding sources to support loan growth.   Instead of cannibalizing their local market, they look to ...

Apr 1, 2019 - by James Lutter, PMA Funding

Current funding paradigm: Wholesale funding options & the use of political subdivisions

A decade after the great recession, the financial institution landscape has changed greatly.  At the onset of the crisis, financial institutions sought to build out diversified liquidity to even the ...

Feb 1, 2019 - by James Lutter, PMA Funding

Year-end review and forecast: A financial institution’s perspective on funding

2018 was another year marred with global uncertainty.  Economic and political instability at home and abroad was constant throughout the year, leaving the markets in flux.  While the economy continued ...

Dec 3, 2018 - by James Lutter, PMA Funding

Tis the season… to review your funding strategy

The holiday season is upon us and the Fed is expected to provide an early gift of 25bps.   With only five shopping weeks left, financial institutions are scrambling to secure ...