ALM 201 - Part II - Exploring Net Economic Value (NEV) - Chapter 10
May 23, 2014•9 min
Listen to this episode in Metacast mobile app
Don't just listen to podcasts. Learn from them with transcripts, summaries, and chapters for every episode. Skim, search, and bookmark insights. Learn more
Episode description
The concept of net economic value (NEV) and its role in estimating interest rate risk is widely misunderstood by credit union executives. Economic value is an excellent methodology to estimate the longer-term risks associated with any loan extending beyond five years. NEV effectively measures the opportunity cost of holding long-term, fixed-rate assets in a rising-rate environment. We will demonstrate how this works.
Chapter 10: Liabilities Play on NEV-Real Life Example
For the best experience, listen in Metacast app for iOS or Android