FHLB Limits

Sometimes an overheated, fluctuating marketplace can lead to a search for alternatives to burning your assets to satisfy liquidity needs. Although core deposits continue to be a key liability funding source, many insured depository institutions are turning to wholesale funding sources to bolster their funding and liability management assets. National CD Rateline is unique in guiding you through the minefield of potential exposure to the inherent credit, interest rate, and liquidity risk these resources present.

For our clients, we closely track the ups and downs of liability funding sources and their up-to-the-moment financial well-being. If their condition suggests it, we strongly advise curtailing them for other investment opportunities with more healthy interest rates. We help manage the question of whether or not to use liability sources based on an instantaneous but thorough analysis of the costs involved, your portfolio profile, and the availability of attractive alternatives. Measuring, monitoring, and managing liquidity risk may also require us to apply enhanced processes such as scenario modeling.

Active, alert, and effective management can mitigate the added risks associated with wholesale funding sources. Reputation risk plays a critical role in your ability to access funds readily at reasonable terms. For that reason our goal is to keep you aware at every moment of any factors, real or perceived, that could affect the market’s and the public’s perception of the soundness of your decisions.