Representatives of First Empire Securities, Inc., a fixed income institutional investment firm, met with Edward P. Dupcak, director of NCUA's Investment Services, and Dan Gordon, NCUA's senior investment officer, to discuss credit union investments and investment activities.
According to First Empire, discussion included current investment strategies, proposed changes to NCUA investment regulations, the value of asset/liability modeling and analysis, and the current investment environment for credit unions. First Empire said it stressed a need for credit unions to continue their education on investments and investment markets, and identified a variety of financial ratios that credit unions can use to determine the suitability of individual investments for their portfolios.
First Empire said it also stressed that longer term investments can present credit unions with a unique opportunity to help ensure stability and security within their balance sheets. "By diversifying their portfolios to include short, as well as long term instruments, credit unions would be provided with a greater level of safety and protection against changes in market conditions," the company said.
One area of discussion focused on the reluctance of credit unions to seek supervisor assistance from the NCUA when questioned by a field examiner on their investment decisions. First Empire and the NCUA agreed that credit unions should maintain open lines of communication with supervisory examiners.