MADISON, Wis. – The latest surplus fund data appear to be signaling that credit unions have "adequate" liquidity. Surplus funds, which includes cash and investments, currently total 29.3% of credit union assets but at $202 billion, funds are down 7.9% over the past year, according to CUNA Mutual Group's latest Credit Union Trends Report. Surplus funds are also down 6.5% year-to-date and 8.7% over the past quarter. While the numbers show that there is "adequate liquidity in the system," concern might come for the long-term. "Although when recent surplus reductions are combined with a 38%YTD increase in borrowing, future liquidity concerns are climbing on the list of leadership priorities," according to David Colby, CUNA Mutual chief economist. Meanwhile, credit unions have increased their holdings of agency securities and deposits at corporates. Durations have shortened with 49.5% of all investments maturing in one year or less versus 46.6% at this time last year, the report indicated.