After the most aggressive tightening cycle in forty years and the second longest period ever with rates at the peak of the cycle, the Federal…
Beneath the wonderful world of interest rate risk (IRR) and asset liability management (ALM) lies a foundation that must be built to ensure an effective…
The last several years have been nothing but an ever-changing, dynamic environment for financial institutions to operate in. First, the pandemic induced the recession of…
The mortgage-backed securities (MBS) market has long been supported by a “buyer of last resort,” propping up demand without being motivated by purely economic concerns.…
The rapidly changing environment of the last two years has left many financial institutions in a state of increased uncertainty. Rising cost of funds, declining…
Build America Bonds (BABs) were created as part of the 2009 American Recovery and Reinvestment Act (ARRA). BABs are federally taxable municipal bonds issued during…
After a little more than two years and 525bp worth of rate hikes, the Federal Reserve has started to signal that rate cuts are on…
The great financial crisis of 2008 brought a slew of new banking regulations and guidance. More specifically, guidance related to best practices for liquidity risk…
In a rising rate environment, bonds priced at a discount become more prevalent. Therefore, it is imperative that municipal bond investors consider the tax implications…
It’s that time of year when families start getting excited about the holidays and management teams at depository institutions start to worry about budget forecasts.…
It’s that time of year when families start getting excited about the holidays and management teams at depository institutions start to worry about budget forecasts.…
Bond refinancings or “refundings” are used by municipalities to save debt service costs on outstanding bonds or to modify certain bond covenants or financing terms.…
I recently joked that I have read an article every week for the past year that says a recession is starting the next month. But…
As most investors know, primary mortgage rates are priced off mortgage-backed securities (MBS). The value of MBS, like all long-term fixed-rate bonds, is influenced by…
Longtime financial strategist Jeff Caughron is retiring this year from The Baker Group after decades of service in roles including CEO and Chairman. He offers…
The Asset Liability Management Committee (ALCO) is an integral part in the management of a financial institution. It is the committee responsible for effectively managing…
The recent bank failures of Silicon Valley Bank and Signature Bank have shown that liquidity risk can produce a bank failure instantly versus a slower,…
Overview: The speed and magnitude of Fed rate hikes has been unprecedented, and we have emphasized that if continued it would likely force something to…
The Federal Housing Administration (FHA) recently announced a decrease to the annual premium charged to borrowers with FHA-backed loans. The reduction goes into effect for…
As we move through 2023, the possibility of a recession is at the forefront of most investors’ minds. Fortunately, most municipalities are in a good…