ALM 201 - Part II - Exploring Net Economic Value (NEV) - Chapter 5
from Mark H. Smith's Podcast Hosted by Mark H. Smith
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 5: Principle of Opportunity Cost
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This episode was published on May 23, 2014.
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