Blog

Business
Insights that
drive results

Posts by Barry Adcock

04/22/2019

The yield curve is inverting. That’s signaled recession since the ’60s. Now what?

Can we predict the future by looking at the past? When you’re talking about finance, the answer may well be yes. Every recession we’ve had since the 1960s occurred about a year after an inversion of the Treasury yield curve. And, it looks like that’s starting to happen right now. But it’s not time to…

Read More >

01/30/2019

Should you be doing something with reference rates?

Just a few short years ago, banking experts encouraged community banks to tie variable rate loans to LIBOR. They said the switch would help smaller banks compete with big banks, while reducing their basis risk, operational overhead, and more. Now with LIBOR facing its probable demise in 2021, many of these same experts are encouraging…

Read More >

11/15/2018

Wild ride: Stay in control during unpredictable conditions

Babies were crying. Strangers were holding hands and praying. Seat belts were pulled tight to the point of impinging circulation. “We’re going to have to ride this out,” the pilot had said. I suspected the 757 was on autopilot, the sophisticated electronics constantly adjusting to the turbulent conditions. “How nice that would be,” I thought….

Read More >

07/16/2018

Rates are rising! Using rate floors now can protect your NIM in the future

The Federal Open Market Committee (FOMC) has been steadily increasing the fed funds target rate since 2015, with the most recent rate hike occurring on June 13, 2018. Despite a historically flat yield curve (28 basis points between the 2-year and 10-year treasury), the communications from the committee leave open the possibility for two additional…

Read More >

05/16/2018

Chasing Your Best Self: It’s All About Your Mindset

Most companies have a set of core values that define their culture. At Deluxe, we have what I think is an awesome set of values. We call it THRIVE. Here’s what it stands for: T: Teamwork. Unified by our strengths, our flaws, and our differences, we work as one team. H: Honesty & respect. We help one…

Read More >

12/06/2017

Helping Your CEO Feel Better about Risk Management

Bank CEOs are a worrisome bunch, and really, who could blame them? It’s the role of a CEO in any industry to manage necessary business risks and eliminate unnecessary ones. Financial institution CEOs have to do so in an environment that’s fraught with risk from multiple sources. PWC’s 20th CEO Survey illustrates the worries financial industry CEOs…

Read More >

11/14/2017

Managing Credit Default Risks in a Rising-Rate Environment

By now, most bank customers are probably aware that the Fed raised its federal funds rate earlier this year, and they’ve probably heard the rate will likely climb again before the end of the year (and multiple times next year). Following the increase, a deluge of information and opinion poured down on consumers, telling them how the higher rate…

Read More >