Often these calculations show the CU is inadequately compensated for option risk. February 9 - Record high refinancing is shrinking mortgage security portfolios. Many CUs, however, are unaware they will also be hit by large prepayments in their mortgage loans-where there are no prepayment models to warn them. Asset-liability management goes beyond managing an investment portfolio. It is impermissible for a CU to send funds to the custodian of a non-SEC registered broker.
Many financial institutions establish correspondent relationships to accept wire transfers.
Funds sent to the financial institution through a correspondent arrangement are permissible for both an SEC registered and non-registered broker. January 26 - Possibly the best source of broker information are state regulators. The CRD provides social security numbers, employment history, licenses, test scores and the entire disciplinary file on a broker. Attorneys will also do some of the work. The SEC, CFTC and NASD data bases are not as useful for a data search of broker histories January 12 - Some cautions for the new year.