Sector Update

April 18, 2022



A few points to start your week


Individual Sector Updates – Click to Access

Agency Market | Agency MBS | Agency ARM | Agency CMO | Municipal Market | SBA Market





Today – Markets moving slow and relatively unchanged, equities and yields are mixed, curve shape +/- 1 bp from Friday



Five-Year Lookback: Loans/Deposits Ratio



Five-Year Lookback: Net Loans/Assets



Upcoming Webinars – (1 hour CPE available, registration opens 2 weeks prior to each webinar)

1/11: 1st Quarter Economic Outlook Webinar ( slides | webinar replay )

2/22 Bank: Positioning the Investment Portfolio for Performance ( slides | webinar replay )

2/24 Credit Union: Positioning the Investment Portfolio for Performance ( slides | webinar replay )

3/8 Bank: Balance Sheet Strategies in an Expected Tightening Cycle ( slides | webinar replay )

3/10 Credit Union: Balance Sheet Strategies in an Expected Tightening Cycle ( slides | webinar replay )

4/12 Bank: Interest Rate Swaps, Not Just for Hedging

4/14 Credit Union: Interest Rate Swaps, Not Just for Hedging

5/10 Bank: Balance Sheet Management and Your Loan Portfolio

5/12 Credit Union: Loan Participation Market Overview


Treasury yields higher, curve flatter to begin 2022, curve remained “un-inverted” and moved steeper last week



Yield on 2- and 3-year declined slightly last week and are level this morning



Yield on 5- and 10-year increased last week and are fairly level this morning so far





Curve Shape – 2s5s currently at 31 bps, very flat for this point in a rate cycle



Curve Shape – 2s10s further steepened last week, currently at 37 bps, very flat for this point in a rate cycle



Mortgage rates continue their climb, 30-Year at 5% for first time in years


Majority of active coupons trading at a discount



What We’re Reading


Market Today | Daily

Weekly Recap | Weekly, Friday

Monthly Review (February) | Monthly, 1st business day

Brokered Deposit Rate Indications | Weekly, Monday

Investment Alternatives Matrix | Weekly, Tuesday

MBS Prepay Commentary (April) | Monthly, 5th business day

SBA Prepay Commentary (March) | Monthly, 10th business day


WSJ: Hot Economy, Rising Inflation: The Fed Has Never Successfully Fixed a Problem Like This

” For now, Fed officials are in agreement they should seek to raise rates quickly to a level that no longer provides stimulus. They have signaled they are likely to approve a half-percentage-point increase at their meeting next month, and possibly again in June. The Fed hasn’t raised rates in such a large increment since 2000.”



Kevin A. Smith, CFA
SVP, Director Investment Product Strategies
Vining Sparks


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