Articles: 2020

November 2020

What’s Trending in 2020? A Year of Uncertainty for Financial Institutions

The first three quarters of 2020 were definitely ones for the history books. Heading into 2020, there seemed to be an optimistic feeling toward economic growth. Conversely, being an election year, there was also a sense of potential market turbulence as the election approached. However, no one could have foreseen what has unfolded as this year progressed.

By: D. James Lutter

Co-author: Todd Terrazas

September 2020

Analyzing Deposit Sources and Managing Expectations During the Pandemic

The pandemic has brought to light the need to review deposit sources and manage depositor expectation. With massive monetary and fiscal stimulus, financial institutions are inundated with excess liquidity at rates near zero. In addition, political unrest coupled with the uncertainty from the pandemic continues to suppress loan growth and hamper economic recovery.

By: D. James Lutter

Co-author: Todd Terrazas

July 2020

Financial Institution Investing During the COVID-19 Pandemic

We’re living through one of the most turbulent times in modern history and it’s currently being reflected in the banking and investment environment. The Federal Reserve System has taken unprecedented easing steps with rate cuts and extensive open market operations. Municipal bonds, commercial paper and corporate bonds are being purchased by the Federal Reserve System to maintain stability in financial markets.

By: D. James Lutter

June 2020

COVID-19 Vaccine and Market Medicine

At the same time that the world is searching for a vaccine for Covid-19, the Federal Reserve, Treasury, Congress and the White House have pumped the U.S. full of medicine to protect households and businesses and avoid a financial crisis. When financial markets nearly came to a halt in mid-March, as investors and the world realized that the global response to the coronavirus pandemic would lead to tremendous strains on businesses and consumers, governments around the world responded with a heavy dose of aggressive actions to relieve some of the pain.

By: Brian Hextell

May 2020

LIBOR – Exit Stage Left?

The London Interbank Overnight Rate (LIBOR) is still on course to sunset at the close of 2021, or is it? There are a number of uncertainties that currently cloud a successful exit strategy, like The onset of COVID -19, a need for the evolution of the Secured Overnight Financing Rate (SOFR) term structures, lack of clear direction on the index, and concerns over SOFR being controlled by a small population of money centers.

By: D. James Lutter

March 2020

ESG – What is it and how does it pertain to me?

ESG – Environmental, Social, and Governance: These are the three central pillars utilized by investors on measuring the social and sustainability (non-financial) factors of entities in which they invest. Investors who focus on ESG incorporate these social and sustainability factors, along with financial factors, to assess risk and performance.

By: D. James Lutter

Co-author: Todd Terrazas

January 2020

Looking Back on 2019: A Financial Institution’s Perspective on What’s to Come in the New Year

2019 will undoubtedly go down as one of the ugliest political circuses in U.S History. However, 2020 may top it with the upcoming election, ongoing impeachment and anticipated onslaught of negative rhetoric.

By: D. James Lutter

Co-author: Todd Terrazas