SOFR — the Secured Overnight Financing Rate — is the benchmark that replaced U.S. dollar LIBOR for a lot of floating-rate consumer credit contracts. It’s a secured overnight Treasury repo rate, published every business day by the Federal Reserve Bank…
Category: Blog
Main entity: The 529 age-based glide path is a preset schedule that shifts college savings from stock funds to bonds and cash as the beneficiary approaches age 18. Adjacent concepts include tuition inflation, fee inflation, room-and-board inflation, the Commonfund Higher…
SOFR — the Secured Overnight Financing Rate — is the benchmark that replaced U.S. dollar LIBOR for a lot of floating-rate consumer credit products. It’s a secured overnight Treasury repo rate published every business day by the Federal Reserve Bank…
Main entity: The divergence between the Atlanta Fed’s Median Wage Growth Tracker and the Bureau of Labor Statistics’ average hourly earnings (AHE) is a measurement gap, not a wage gap. The median tracker follows the same person over 12 months;…
Main entity: The Bank Term Funding Program (BTFP) repayment schedule is the calendar of maturing one-year advances that banks took from the Federal Reserve between March 2023 and March 2024. Adjacent concepts are the standing repo facility, the overnight reverse…
Property insurance non-renewals are a financing event before they are a weather event. The main entity here is the catastrophe bond reset calendar—the scheduled repricing dates when insurers, reinsurers, and insurance-linked securities funds rebalance their exposure to U.S. wind, wildfire,…
Deposit beta asymmetry is the measurable difference between how fast banks pass rate increases into savings and CD yields versus how slowly they pass rate cuts back down. It is the core transmission mechanism between Federal Reserve policy and the…
SOFR—the Secured Overnight Financing Rate—is the replacement benchmark for U.S. dollar LIBOR in most new consumer and commercial loans. For a homeowner with an adjustable-rate mortgage, the SOFR transition is not a back-office detail. It changes the arithmetic of the…
Credit bureau trended data is the monthly, field-level history of your credit accounts—balances, scheduled payments, actual payments, and utilization—that the three major bureaus and scoring vendors now package for lenders. It sits next to your point-in-time FICO score, but it…
Employer-sponsored disability insurance premiums are a direct pass-through of long-duration bond math. When the 10-year Treasury yield falls from 4.20% to 3.80% over a six-month window, the discount rate used to price a 10-year group long-term disability policy drops by…
Main entity: The Canada Mortgage Bond (CMB) program is a federal securitization backstop that pools insured residential mortgages and sells them to institutional investors. Its winddown changes the funding mix for lenders, and that change is already priced into the…
Your utility bill has a hidden clock. The fuel adjustment clause — the line item that lets a regulated electric or gas utility pass through the wholesale cost of fuel without a full rate case — does not move when…