MASSENA, N.Y.-One CU CEO acknowledges that sharpening in-house investment expertise is a big after-effect of the recession.
Scott Wilson said while greater attention to safety is always a reason to sharpen investing skills, SeaComm FCU has become savvier due largely to slim yields and tight margins.
"SeaComm FCU has had to become more prudent in its investment strategies," Wilson explained. "No longer were we able to rely on certificates of deposits, but had to become more sophisticated with other investment vehicles, such as GSEs, MBS, SBA's and taxable municipal bonds."
Wilson said those vehicles afforded the $450-million CU the ability to earn "vital yield" in a very low interest rate environment.
"That said, we are able offset and provide our institution minimal interest rate risk by having our portfolio diversified, having call features on our bonds, along with step-ups, such as those issued through the Federal Home Loan Banks."