Search
 
Expert Opinion

5 Tips for Navigating Market Uncertainty

Don’t look at today’s markets like the sky is falling – instead, seek out quality prospects.

By Darren Fago and Robert Perry | March 25, 2020 at 09:00 AM
economic questions Source: Shutterstock.

During this time of rapid and drastic market changes, we believe that it is important for long-term investors like financial institutions to be patient and remain calm. Liquidity was very poor last week and realized volatility for US Treasuries and Mortgage Backed Securities (MBS) has been historically high. In general, now is NOT the time to sell quality assets. However, this is the time for financial institutions to remain diligent and make sensible and timely decisions.

As global policymakers continue to provide support to aid market functionality, COVID-19 is affecting the mortgage market dramatically with lockdowns delaying loan closings and potentially impacting MBS supply and prepayments. Discussions of mortgage payment delays are also sparking concerns for real estate investment trusts and other participants, while large loan originator refinance rates have spiked to close to 5% for 30-year loans.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.