Sept. 6, 2004


  • Is the move to longer investments just an impatient push for yield as the compressed margin has hurt ROA over the last few quarters and CU management is feeling pressure to improve earnings performance regardless of the long-term risks involved?
  • I am surprised that CU investment managers are lengthening the duration of their investments in a rising rate market. The spread between 6 mo. and 2 yr. treasuries has been narrowing for almost three months. It seems counterintuitive to invest long in a rising rate environment.