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Friday, November 16, 2018 |
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 11/8/18 | 2.21 | 2.35 | 2.52 | 2.74 | 2.98 | 3.05 | 3.09 | 3.17 | 3.24 | 3.36 | 3.43 |
| 11/9/18 | 2.21 | 2.36 | 2.52 | 2.73 | 2.94 | 3.01 | 3.05 | 3.13 | 3.19 | 3.32 | 3.40 |
| 11/13/18 | 2.24 | 2.38 | 2.53 | 2.72 | 2.89 | 2.95 | 2.99 | 3.07 | 3.14 | 3.28 | 3.36 |
| 11/14/18 | 2.24 | 2.38 | 2.52 | 2.71 | 2.86 | 2.92 | 2.95 | 3.04 | 3.12 | 3.26 | 3.35 |
| 11/15/18 | 2.20 | 2.37 | 2.51 | 2.70 | 2.86 | 2.91 | 2.94 | 3.02 | 3.11 | 3.27 | 3.36 |
Source: U.S. Department of the Treasury, as of 11/15/2018
Another Check-list to End Your Week! (Perfect for Planning)
I recently attended a State association economic conference and one of the speakers was a State banking examiner. During the presentation, the examiner noted how little training the examination staff has received to examine the CECL process. In fact, it was mentioned that we will all likely be learning this together. However, what was said is that part of the exam focus going forward will be discovering what steps have taken place so far to adhere to the new CECL regulations. According to the presentation, an examiner’s focus will be on (1) if you have a plan to get to the implementation date and (2) do you have a timeline that can track your steps. The presenter provided the group a checklist of steps that management teams should consider when addressing CECL. If you would like a copy, please let us know and we can pass it along to you.
For most banks, the deadline for CECL implementation will be your fiscal year start after December 31st, 2021. Examiners will expect you to run your CECL calculations for 12 months prior to this date in parallel with your current ALLL calculation to gain a full understanding of what the impact will be. We have heard from a few banks that they are already implementing a full CECL model now, paying the full price of a model that is not yet required. AMG currently offers a full model that can be utilized and is both comprehensive and very competitive with other products on the market. We also offer a solution that should be very well received during the “pre- CECL implementation” phase while providing significant cost savings to your organization. This option provides you with the maximum flexibility to choose while offering you more time to decide which model is best for you. This solution is referred to as “Bootcamp”. Bootcamp is a data collection and education platform that allows you to see what data you currently have in your systems for the calculation and where you might need to make improvements. This option allows control of your data at a much lower cost than implementing a full CECL model now. We currently offer special pricing on this option between now and the end of the year. If you would like to learn more, please reach out and we will be happy to help.
I recently attended a State association economic conference and one of the speakers was a State banking examiner. During the presentation, the examiner noted how little training the examination staff has received to examine the CECL process. In fact, it was mentioned that we will all likely be learning this together. However, what was said is that part of the exam focus going forward will be discovering what steps have taken place so far to adhere to the new CECL regulations. According to the presentation, an examiner’s focus will be on (1) if you have a plan to get to the implementation date and (2) do you have a timeline that can track your steps. The presenter provided the group a checklist of steps that management teams should consider when addressing CECL. If you would like a copy, please let us know and we can pass it along to you.
For most banks, the deadline for CECL implementation will be your fiscal year start after December 31st, 2021. Examiners will expect you to run your CECL calculations for 12 months prior to this date in parallel with your current ALLL calculation to gain a full understanding of what the impact will be. We have heard from a few banks that they are already implementing a full CECL model now, paying the full price of a model that is not yet required. AMG currently offers a full model that can be utilized and is both comprehensive and very competitive with other products on the market. We also offer a solution that should be very well received during the “pre- CECL implementation” phase while providing significant cost savings to your organization. This option provides you with the maximum flexibility to choose while offering you more time to decide which model is best for you. This solution is referred to as “Bootcamp”. Bootcamp is a data collection and education platform that allows you to see what data you currently have in your systems for the calculation and where you might need to make improvements. This option allows control of your data at a much lower cost than implementing a full CECL model now. We currently offer special pricing on this option between now and the end of the year. If you would like to learn more, please reach out and we will be happy to help.
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
•Not FDIC Insured •No Bank Guarantee •May Lose Value