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Posts by Barry Adcock

10/30/2019

CFOs as Performance Management Leaders

Banks are facing a battery of challenges – from the volatile rate environment shaving margins ever-thinner, increasing compliance costs, and ever-evolving customer expectations. In this environment, every basis point in NIM matters. Those FIs with the best analytics that can harness their data faster and focus on performance management will come out on top. The…

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07/25/2019

Reference rates and the LIBOR sunset: Cause for concern?

In June 2017, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight Financing Rate (SOFR) as the replacement for USD LIBOR. SOFR is based on the overnight interest rate received for lending cash against Treasury securities. These debts are backed by the collateral of US Treasuries, making SOFR a secured rate. Futures and overnight…

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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…

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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…

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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….

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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…

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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…

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