Credit Unions Look to Catalyst for Investment Answers

Low interest rates, high liquidity, increased regulation and concerns over interest rate risk made 2012 another challenging year for credit union management, according to Mike McGinnis, vice president of investment sales at Catalyst Strategic Solutions. As a result, credit unions have increasingly turned to their corporate credit union for answers.

Over the course of 2012, Catalyst Corporate Federal Credit Union and its subsidiary, Catalyst Strategic Solutions, added 112 credit unions to its investment and balance sheet management services. These new accounts bring the current total to 1,061 credit unions in 33 states utilizing Catalyst’s broker/dealer services through CU Investment Solutions (ISI), ALM, advisory services and/or SimpliCD program.

“Throughout the year, Catalyst’s team of 27 analysts, advisors, investment officers and operations specialists stayed focused on providing credit unions with competitive investment solutions, accurate ALM analytics, full balance sheet consultation and useful educational resources as efforts to help credit unions keep their members satisfied,” said McGinnis.

Several other factors made investing excess funds in a low rate environment even more challenging last year.  Credit unions also faced a decline in new agency bond issuance, fewer banks offering institutional CDs, and the Federal Reserve’s purchasing of mortgage backed securities as part of the September quantitative easing (QE3) stimulus program, added McGinnis.

Through access to extensive investment security inventories and diligent efforts to find available CDs, the Catalyst team was able to provide competitive quality investments throughout the year. Through Catalyst Strategic Solutions advisory services, the ISI brokerage services and the SimpliCD program, 474 credit unions placed trades and invested over $6.4 billion, McGinnis pointed out.

In addition to meeting credit unions’ investment needs, Catalyst Strategic Solutions also assisted 263 credit unions with ALM reporting. During 2012, seeking efficiencies in managing their credit union, 49 new credit unions turned to Strategic Solutions for analytical services including ALM validations, mortgage servicing right valuations, core deposit studies and the advisory’s full balance sheet consultation services.  

“As credit unions own Catalyst Corporate, utilizing the corporate’s investment and analytic services is a natural relationship that provides significant value from a trusted source.  Catalyst Strategic Solutions’ seasoned, knowledgeable staff and resources are exclusively dedicated to our member/owners and, as a cooperative, profits are returned to our members through their corporate ownership,” said McGinnis.

 

Strategic Link is the NWCUA’s wholly-owned service corporation, providing the Association’s member credit unions with exclusive high-quality, competitively-priced products and discounted services. To learn more about how the Association’s partnership with Catalyst Corporate can benefit your credit union, contact Director of Strategic Partnerships Craig Reed: 206.340.4789, creed@nwcua.org.

For more detailed information about Catalyst Strategic Solutions investment and balance sheet management services, contact Mike McGinnis: 800.301.6196, contactis@catalystcorp.org.

Posted in Around the NW, Marketing & Communications.