NEW DERIVATIVE HEDGING SERVICE
updated 04/24/14 10:06 AM
Announded by Catalyst Corporate
Catalyst Strategic Solutions, a wholly-owned credit union service organization (CUSO) of Catalyst Corporate FCU, has launched a Derivative Hedging Service to help credit unions mitigate interest-rate risk.
In January, the National Credit Union Administration (NCUA) approved a rule authorizing certain federal credit unions to purchase derivative instruments for risk management purposes. Parameters for credit unions purchasing derivatives under the new rule include assets of $250 million or more, a CAMEL rating of 1, 2, or 3, and a management rating of 1 or 2.
Among the services to be provided:
“While a small number of credit unions have had access to derivative instruments for the last decade, using them to hedge risk is unchartered territory for most,” said Bruce Fox, Catalyst Corporate’s EVP/chief investment oficer, and Catalyst Strategic Solutions principal. “Catalyst Strategic Solutions is uniquely positioned to help credit unions implement a successful hedging program for a variety of reasons—one of which is a track record of developing credit union balance sheet risk management strategies for more than 20 years.”
Click here for more information about Catalyst’s Derivative Hedging Services.