Articles: 2019

December 2019

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 have turned to a negative interest rate policy.

By: D. James Lutter

Co-author: Todd Terrazas

December 2019

Muni Bonds 101

This is the third edition of Muni Bonds 101: “NIC, TIC, AIC & Bond Yield- What’s the Difference?” which begins with foundational terms that will be used when discussing different measures of the cost of financing associated with a bond issue.

October 2019

2019 Market Disconnect-Deposit Pricing Strategy:
How to Stay Competitive in a Disconnected Market Without Getting Burned

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 taxes, mid-month treasury auctions, global uncertainty, quarter-end and the upcoming Federal Open Market Committee meeting.

By: D. James Lutter

Co-author: Todd Terrazas

September 2019

Muni Bonds 101

This is the second edition of Muni Bonds 101: “Premium Bonds After the Call Date” which compares callable and noncallable premium bonds and points to consider when evaluating premium bonds after the call date.

August 2019

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. However, according to the Atlanta Fed’s GDPNow forecast, second quarter GDP is estimated to be substantially lower at 1.6 percent.

By: D. James Lutter

Co-author: Todd Terrazas

July 2019

Muni Bonds 101

This is the first edition of Muni Bonds 101, an educational series launched by PMA Securities, LLC (PMA) to educate the issuer community on matters related to municipal bonds. While PMA’s professional staff is committed to the municipal bond market daily, many issuers in PMA’s client base issue bonds only a few times a year to once every 10 years or longer.

June 2019

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 institutions rolled out a slew of CD rate specials, high-yield money market accounts and online deposit-gathering portals.

By: D. James Lutter

Co-author: Todd Terrazas

May 2019

PMA Whitepaper: Municipal Bond Market Investing

This white paper provides a guide for institutional investors seeking to understand and invest in municipal bond markets, comprehensively detailing the following aspects of municipal markets and investing:

• Municipal Bond Types
• Municipal Credit Analysis
• Understanding and Investing in Municipal Markets
• Regulatory Overview

By: D. James Lutter, John Vaci & Kyle Siverts

April 2019

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 spread of detriment. The uncertainty of the crisis, both in depth and duration, forced financial institutions to secure multiple sources of funding and borrowings that may not have been traditional pre-crisis.

CUInsight.com, April 1, 2019
Posted with permission by CUInsight

March 2019

Disciplined Investing as Fed Signals Change

Financial markets are always changing and continuously present new opportunities and challenges for investors. The most successful investors are those that stick to a well-defined investment plan which enables them to maximize income and limit risk throughout market cycles. For many public entities, an effective approach is an asset-liability investment strategy.

February 2019

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 to grow, economists’ and the Fed’s forecast growth will slow in 2019 by upwards of 0.7 percent, and continue to trend lower into 2020, upwards of 1 percent.

CUInsight.com, February 1, 2019
Posted with permission by CUInsight