Correspondent Blog

In a previous article, we discussed the three generic shapes of the yield curve:  normal, inverted, and flat. We also pointed out that the current inverted yield curve is unusual and is expected to last for the near term.  The average community bank’s cost of funding is highly correlated to Fed Funds and SOFR (for…

Over the last 15 years, an ever greater percentage of community banks have embraced some form of interest rate hedging.  Approximately 1,000 banks in the country use some form of hedging products to manage risk, generate fee income, or provide product offerings demanded by their customers.  Most of the top 100 banks (by asset size)…