Corporate Credit Unions Signal a Change

Recently analyzed data by Callahan & Associates' Corporate Peer-to-Peer software shows an increase in liquidity at natural person credit unions. During November 2000, daily average net assets (DANA) grew to $34.3 billion, which is an increase of 2.85% from the month prior when DANA was at $33.5 billion. This is a very significant increase, especially when compared with November 1999 when the DANA declined by -2.57% from the month prior.

 
 

in Natural Person Credit Union Liquidity

Recently analyzed data by Callahan & Associates' Corporate Peer-to-Peer software shows an increase in liquidity at natural person credit unions. During November 2000, daily average net assets (DANA) grew to $34.3 billion, which is an increase of 2.85% from the month prior when DANA was at $33.5 billion. This is a very significant increase, especially when compared with November 1999 when the DANA declined by -2.57% from the month prior.

This positive change in monthly DANA during November shows that lending in natural person credit unions has slowed in the 4th quarter. Natural person credit unions now have more liquidity to invest in the corporate system because of this reduction in lending. Year-end data for the natural person credit unions will show this increase in liquidity.

All through 2000, corporate credit unions have been one of the top providers of funds to the natural person credit unions. However, as 4th quarter data becomes available we will see this demand for liquidity decline from the natural person credit unions. This increase in natural person liquidity will cause the corporate system to shift its role from that of a lender to more of a money manager for credit unions.

Top Ten Corporates in Daily Average Net Asset Growth in November 2000
1

MO

MISSOURI CORPORATE 18.29%  
2
WI WISCONSIN CORPORATE CENTRAL 14.20%  
3
ND NORTH DAKOTA CENTRAL 9.96%  
4
KS KANSAS CORPORATE 8.93%  
5
MT TREASURE STATE CORPORATE 8.63%  
6
MI CENTRAL CORPORATE 8.43%  
7
NY LICU CORPORATE 7.37%  
8
AL ALABAMA CORPORATE 5.76%  
9
MA EASTERN CORPORATE 4.72%  
10
TX SOUTHWEST CORPORATE 3.98%  


 

 

 

Feb. 5, 2001


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