Despite warning about interest rate risk for years, rates still remain low. However, credit union investment portfolios are already feeling the effects of interest rate volatility in the form of unrealized losses. Credit union managers who think they can simply sell off fixed-rate mortgages when rates rise might be in for a shock when the market reacts to the increases. Learn what you need to know about interest rate risk, and how your credit union can minimize it.
Interest Rate Risk Goes Beyond Mortgages: Volatile interest rates are producing unrealized losses on credit union investment portfolios.
Yield Curve Key to Interest Rate Risk Management: Experts say rising rates themselves aren't the problem; it's the spread that matters.
NCUA vs. Credit Unions: How Much IRR Risk Is Too Much?: Despite concerns from examiners, credit unions are better positioned to handle interest rate risk than for-profit competitors.
No User Fees in Final Derivatives Rule: The NCUA Board also dialed back the rule's authority to only apply to federally chartered credit unions.
NCUA Video Warns of Interest Rate Risk: CUs are increasing IRR by lengthening investment maturities in search of yield, NCUA economist says in YouTube video.
Examiners Applying Opinion to IRR Management: Retired NAFCU CEO Fred Becker warned last year that examiners were taking a subjective approach to IRR stress testing.
NCUA Approves Interest Rate Risk Rule: Read about the IRR rule finalized by the NCUA Board in January 2012.