Due to the stimulus packages designed to help families during the pandemic, credit unions have seen a steep increase in deposits. But higher volumes of deposits bring on a new challenge; namely, finding new investment opportunities that allow credit unions to deploy their excess liquidity into higher earning assets.
Manufactured Housing News
When it comes to portfolio diversification strategies, there are no one-size-fits-all solutions that could meet the needs of every credit union. In general, however, a credit union must be efficient and innovative in order to address specific challenges and achieve optimal portfolio diversification.
During an economic downturn, people tend to cut spending and postpone big purchases, like cars and homes. But even though we’re currently facing a decline in economic activity, many people are planning to buy a home within the next few months. Conversely, many financial institutions are originating fewer auto loans despite rock-bottom interest rates.