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ALM 201 - Part II - Exploring Net Economic Value (NEV) - Chapter 11
Mark H. Smith's Podcast
English - May 23, 2014 00:00 - 3 minutes - 5.01 MBBusiness credit unions finance alm liquidity risk business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works.
Chapter 11: Summary and Wrap-Up