Something happened at the end of 2018...We finally entered the era of the dreaded "Negative Yield Curve." For some this is only a mild curiosity, but for those who manage money, this has potentially profound implications...Read More
For centuries people were baffled by the strange markings on Egyptian tombs and temples. It was known that these markings were important to the understanding of this remarkable ancient culture. However, the key to this understanding was unavailable.
Fortunately, we do not have to wait centuries to find significant clues to the perplexing questions that face us as related to the future course of Interest Rates...Read More
As a follow-up to our Executive Advisory on Non-Maturing Deposits from a couple of weeks ago, I would like to make the following additional observations and reminders. Over the past few years, our Clients have been bombarded by Regulatory concerns related to a potentially explosive increase in Deposit Rates in general and Non-Maturing Rates specifically when the Fed exited its Zero Interest Rate Policy (ZIRP)...Read More
During periods of change in Monetary Policy it is always wise to reassess where we have come from, where we are, and where we think we are going. It is important to ascertain that our performance, and our anticipated performance, conform to our expectations and to those of our Board and our Regulators. To the extent that there are differences, we may be required to either change direction or be prepared for some constructive conversations...Read More
Non-Maturing Deposits ~ Interest Rate Symmetry, Evolution of the Fed, the Dismantling of Reg Q and other Mysteries...
It is possible to forecast the future course for Rates on Non-Maturing Deposits. It may appear to be a riddle, or even a mystery, and it can certainly be an enigma, but there is a key. That key is totally based upon the "economic self-interest" of Banks and Bankers...Read More