BAI Banking Strategies Daily-Improving Fixed Income, Courtesy of the Fed

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Improving Fixed Income, Courtesy of the Fed

The Fed’s recent guidance on future changes in interest rates provides bankers with an unusual opportunity to improve their returns on the fixed income market.

The article Improving Fixed Income, Courtesy of the Fed was published in BAI Banking Strategies Dailyand authored by David Austin, Vice President- Business Development of  CetoLogic.

David suggests that a  proven approach to maximizing assets is through Deposit Reclassification, a retail sweep program that reclassifies a portion of a financial institution’s transaction accounts as savings deposits for reporting purposes. In effect, this program reduces the institution’s reserve requirement below cash holdings and recovers a low earning balance back to the bank for investment opportunities.

David believes that  bankers should actively mine their balance sheets, search for any underperforming assets,  and leverage daily strategies to generate incremental levels of revenue from the fixed income market.

Use the following link to learn more http://www.bai.org/bankingstrategies/Strategy/Finance/Accounting/ALCO/Improving-Fixed-Income,-Courtesy-of-the-Fed?utm_source=BSO_Daily_072414&utm_medium=email&utm_campaign=BSO_Daily_Enewsletter&utm_content=thoughtleadership&ca=INSERT_CUSTOM01&mkt_tok=3RkMMJWWfF9wsRoluKjJZKXonjHpfsX67eQsW6%2Bg38431UFwdcjKPmjr1YEHSMN0aPyQAgobGp5I5FEMS7XYTqtit6AKXQ%3D%3D