Insight Category: Opinions

Smaller and medium-size institutions who account for almost a third of all bank lending are currently experiencing deposit outflows. This has broader implications for their asset-liability management, liquidity position and ultimately market share. Referencing a credit sensitive element such as an Across-the-Curve Credit Spread Index (AXI) in new SOFR-based lending by smaller and medium-size banks can help reduce the likelihood and magnitude of deposit outflows to America’s…