News & Insights

Relationships matter. As a credit union, you need partners that will stand with you through thick and thin. This is who Catalyst is, and what Catalyst does. That’s the value of partnerships…a true relationship.

At the beginning of 2022, the NCUA instituted the Subordinated Debt Regulation which replaced the Secondary Capital Rule. This regulation permits credit unions to issue subordinated debt as a way to boost their capital position. As more credit unions look to issue subordinated debt, you are likely to see opportunities to invest in these credit union-issued subordinated debt notes.

Interest rates on investments have risen substantially since the beginning of the year, particularly on maturities of five years or less. The two-year Treasury yield is up more than 70 basis points, and the five-year Treasury is up more than 50 basis points from year-end 2021 levels. What does this mean for your investment portfolio?