KBRA Releases The Bank Treasury Newsletter

NEW YORK--()--Kroll Bond Rating Agency (KBRA) releases this month’s edition of the newsletter, Bank Treasurers Try to be Thankful, which reports on the recent steepening in the yield curve and how some bank treasurers have taken advantage of a short window to add duration to their bond portfolios, while others have continued to reduce non-core funding.

With Current Expected Credit Loss (CECL) just a little more than a month away from its effective date, bank managers are beginning to concede that the accounting rule could have a negative effect on bank appetite and pricing for consumer loans. Also, with two years and a month before LIBOR is decommissioned by the ICE and replaced by the Secured Overnight Financing Rate (SOFR), banks are looking at alternatives to SOFR, including Ameribor and the Bank Yield Index, which offer key advantages relative to SOFR and track LIBOR more closely than that rate.

Finally, technological spending by banks continues to grow. While the arms race between artificial intelligence, machine learning software, and the ease of mobile banking has destabilized the foundation of banking around core deposit funding, it has also offered the promise of a more level playing field for banks of all sizes.

To view the report, click here.

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About KBRA and KBRA Europe

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

Contacts

Analytical:

Ethan M. Heisler, CFA, Senior Director
(516) 359-0975
eheisler@kbra.com

Business Development:

Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com

Contacts

Analytical:

Ethan M. Heisler, CFA, Senior Director
(516) 359-0975
eheisler@kbra.com

Business Development:

Dave DeMilt, Managing Director
(646) 731-3335
ddemilt@kbra.com