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[Chapter 7] ALM 201 - Part I - Exploring Income Simulation (03-11-14)
Mark H. Smith's Podcast
English - April 03, 2014 00:00 - 11 minutes - 16 MBBusiness credit unions finance alm liquidity risk business Homepage Download Apple Podcasts Google Podcasts Overcast Castro Pocket Casts RSS feed
Previous Episode: Implementing the NCUA Liquidity Risk Regulations (02-06-14)
Chapter 7: Income Simulation and Wrap-Up
Income simulation is the most common method of estimating interest rate risk in the credit union's balance sheet. It is simple in concept, but complex in its application. In this presentation, we will explain how income simulation works. The most common variables and assumptions, such a prepayment speeds and deposit rate sensitivity, will also be covered.