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| What did 'ya need "to get the message", a registered letter!?! |
announcement (... a surprise only to the "hazards of Duke"!) of an interest rate change, noticed that the agenda [here's the link] for today's NCUA Board meeting is packed with "interesting stuff", like the Corporate Stabilization Fund and NGN Legacy Asset Disposition Strategy - may well be worth "streaming", starts at 10 a.m.!
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| "Pay no attention to that ("robust") man behind the curtain..." |
We've been talking about 1) repositioning and shortening the NCUSIF portfolio in the face of an announced FED strategy of raising rates (perhaps with 3 more rate increases in 2017!), and in doing so, 2) "capturing" and booking the $247 million in "unrealized gains" reported by Mr. Rendell L. Jones, NCUSIF CFO, at October 31, 2016.
Well, as part of the reporting for the meeting today, NCUA has published the November 30, 2016 NCUSIF financials and that $247 million unrealized gain has grown into a...
... reported unrealized loss for the NCUSIF portfolio as of November 30, 2016 of
-$41,395,000.*
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| A swing and a miss! |
Oh, well...
* A $500 million swing in value in just 5 months!... and each additional 25 basis point increase by the FED next year will create a further -$143 million in unrealized losses.
ACCOUNTABILITY - COMPETENCY -TRANSPARENCY
* A $500 million swing in value in just 5 months!... and each additional 25 basis point increase by the FED next year will create a further -$143 million in unrealized losses.
ACCOUNTABILITY - COMPETENCY -TRANSPARENCY
4 comments:
Like I said, "about zero". Was off a little.
The US Treasury with a 5 year maturity finished down in price by about a half point yesterday.
So it's a larger "miss" this morning.
Prudent investment strategy could have paid fo the 23% exhorbitant lawyer fees.
Now we get assessed.
Good job for government work.
NCUA, systematically built to underperform.
No F...so no A...so no C...and it starts with no T for transparency.
And mcwatters isn't the answer apparently.
And credit union trades do not hold NCUA accountable so we pay them....why?
Congress.
Waiting on congress.
For what it is worth, we received formal guidance to expect between 3-6 bps of assessment expense in 2017 and were told to put it in our budget.
On assessments, if the NCUA permits the current NCUSIF investment posture to continue, the NCUA budget is not cut substantially (which is impossible in the short run) and CUs continue to grow strongly, then CUs will be assessed in each of the next 3 years at a minimum
And, you can take that forecast to the bank!
Mr. Blaine you're going to see you're wrong about the NCUA Board today no cojones!
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