Given the rising rate environment, many investors are looking for ways to mitigate their interest rate exposure, often investigating floating-rate assets. As discussed previously in our first article, Floating on Rising Rates to Success, from [...]
Managing a portfolio of loan participations is no different than managing your own loan book: attention must be paid to ever-changing credit risk, interest-rate risk, and one’s liquidity profile, among other things. Yet, loan [...]
In our previous article related to measuring nonprime returns and associated risks, we addressed the importance of having a consistent quantitative framework for measuring return and risk. Having a risk-return framework allows institutions to approach [...]
Currently many financial institutions find themselves having excess liquidity and are experiencing net interest margin (NIM) compression. In response, ideas to enhance yield through riskier investments and/or expanding credit boxes to serve lower credit [...]
Lending institutions clearly need analytics of all sorts when evaluating their own loan book: static analyses of concentration and associated risk, backward-looking performance analytics, and forward-looking performance forecasts. Why then are similar analyses of participated [...]
During the past year, net-interest margin (NIM) compression has become a pervasive challenge for many credit unions. More broadly, many credit unions are experiencing difficulty generating sufficient revenue because of a lack of interest income [...]
