DALLAS (7/30/09)--Credit unions should proactively monitor their asset portfolio profiles including pricing, yields and durations, according to an advisory from Southwest Corporate Investment Services. Credit unions also need to balance the high cost of liquidity against lengthening duration in light of a potential rising-rate environment, the corporate said. The advisory, “How Market Spreads Impact Relative Value,” focuses on the factors that impact asset spreads and evaluates current levels for core and non-core assets. The paper noted that the shape of the Treasury curve has gone from flat to positively sloping and short-term rates have declined significantly more than longer-term rates. Treasury yields are benchmarks for loan and investment market rates. From June 2008 to June 2009, the three-month, two-year and 10-year treasuries decreased 155, 168 and 53 basis points, respectively, the paper said. For more information, use the link.