4SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,James Lutter D. James (Jim) Lutter is the Senior Vice President of Trading and Operations at PMA Financial Network and PMA Securities where he oversees PMA Funding, a service of both companies … Web: pmafunding.com Details A decade after the great recession, the financial institution landscape has changed greatly. At the onset of the crisis, financial institutions sought to build out diversified liquidity to even the spread of detriment. The uncertainty of the crisis, both in depth and duration, forced financial institutions to secure multiple sources of funding and borrowings that may not have been traditional pre-crisis. As a result, the industry as a whole has grown; it is more profitable and better capitalized. With the economy still in growth mode and a friendly regulatory environment, funding has moved back into the forefront of issues in 2019. Supply is becoming constrained and financial institutions have to reach beyond core markets to support loan growth and stay competitive. The traditional model of serving customers within a local footprint continues to erode because of technology and other nonfinancial services. With continued evolution of competition and technology, there is more strain for funding, both core and wholesale. For example, there are a variety of services that require balance minimums that would otherwise be deposits at financial institutions. Typical balance minimums could range from $10-$40 depending on service, such as Uber for example, which over a broad population, can be significant. In addition, many of the larger institutions are utilizing their own listing service or portal to attract retail depositors. These portals have become user friendly and offer competitive rates. Once convinced, they can begin to sell other services. In order to stay competitive, financial institutions need to be aware of other competing sources and determine ways to offset through diversification and footprint expansion. By using technology, financial institutions can expand their footprint without the addition of brick and mortar and can offset shortfalls by leveraging the wholesale market.Having said this, not all wholesale funding sources are the same, therefore vetting should be conducted prior to engagement. The key is to determine each source’s role in the deposit process and an ongoing relationship with the depositor. The more clarity provided at the onset of engagement will help eliminate unexpected surprises during times of stress. Depending on the relationship with the depositor, the source may be influenced by how the depositor reacts in various stressed situations. Political subdivisions can be used as a stable source of funding. Comprised of municipalities, schools, libraries, water and park districts, they are typically large depositors from within the community. Political subdivisions are depositors that often utilize money managers to help in the investment process, due to the myriad of other pressing tasks they face in serving their communities. Through a money manager, political subdivisions are often viewed as wholesale funding options. They are funded through county sales, property taxes, user fees and state and federal sources and receive funding throughout the year, and then invest it to meet obligations. Funding is repeated on an annual basis, making political subdivisions reliable and consistent sources of deposits. There are two main challenges with political subdivision deposits. Their balances are cyclical in nature and usually require some form of collateralization. In addition, political subdivisions are usually limited by investment policy and/or state statute to low risk fixed income investments, and most require collateralization on funds in excess of insurance limitations. This is one type of wholesale funding option. An overview of other options is listed below: Referral Services – Commonly referred to as a broker’s broker, typically matches advisors (money managers, trusts, escrows, etc.) or depositor with banks. These services are usually limited to no direct relationship with the end depositor. Thus, they possess limited knowledge of depositor’s investment policy, deposit stability and/or the impact of stressed situations on the deposits. Broker-Dealer – Underwrites DTC deliverable certificates of deposit for the issuing bank. The broker-dealer then sells shares of the certificate/issue to retail and wholesale clients. The issuing bank does not have a direct relationship with the end depositor. The certificate is held in a street account through a custodian for the benefit of the depositor. Also, the certificate can continually be bought and sold throughout the life of the term. The certificate typically cannot be redeemed prior to maturity without death or adjudication. In stressed situations, the active certificates remain stable, but new/replacement issues can become expensive and even unattainable.Money Managers – A direct relationship with the depositor and the bank. The money manager possesses a good understanding of the depositor’s investment policy, deposit stability and the impact of stressed situations on deposit availability. The money manager may even apply additional credit standards or concentration limits beyond that of the investment policy of the depositor. The examples above are not inclusive, but provide a broad overview to consider. Wholesale funding can be a good complement to traditional funding, but it is critical that banks understand the source behind the deposit. Prior to participating, an operating plan/template should be constructed to outline the rules of engagement, specifically covering the various sources and types of brokered funding:When should wholesale funding be utilized; Establishment of concentration limits;Defining the relationship of the source to the depositor. By utilizing wholesale funding in conjunction with technology, it will help level the competitive playing field. Pressure on core funding will continue and, through technology, one can stave off competition and even mount an offensive. In addition, wholesale funding can be layered to mitigate cyclically and offer alternative solutions. The better prepared, the greater the probability of success.
All of it was off the record – with some irony the NBA apparently doesn’t care to acknowledge. Even some mass media distribution has its limits and could dilute the perception of unfiltered truth speaking.But Connor Schell, ESPN’s award-winning documentarian recently promoted to executive vice president of content and on a panel led by TNT’s Ernie Johnson that did a deeper dive into the art of storytelling with today’s techno gadgetry, was able to explain more of his take-away from how the NBA is telling – and selling – its own narrative at this season’s intermission.In this particularly appropriate city, and at this exact moment, it can’t be undervalued as a template to reinforce for others to admire and apply to its own game plans.“We talk about the elements of every story you tell – inform, entertain and surprise, and nothing surprises people like live sports, because no one knows the ending, so that becomes the greatest vehicle for story telling in the world,” said Schell in the hotel lobby afterward.“Sports creates heroes and villains and sympathetic characters and all this drama and triumphs and sadness – it’s all the elements of a great Hollywood story, or a documentary, plays out on the court literally every day. “And the NBA and its players have been successful in adding to that a real-time access and conversation. There is seemingly as interesting off the court as on the court and they’ve done that really well. Ultimately all that leads to greater connection with their fans and more interest in the game.”A MULTI-PLATFORM PERFORMANCEIf this storytelling thesis wasn’t working, the good old TV ratings might reflect it. But in the NBA, that’s another story it enjoys framing positively.The Sports Business Daily reported that NBA regular season games to date over ABC, ESPN and TNT are up 15 percent from last year through the All-Star break. TNT leads the way with a 20 percent jump (1.9 million viewers through 44 telecasts). Broken down by demographics, women’s influence on the numbers is more impressive than the men’s.Games on regional networks are up 9 percent. The Clippers’ games on Prime Ticket have seen an 88 percent jump in the adult 18-to-34 age demographic through 54 games this far, according to Nielsen sources. Lakers’ games on Spectum SportsNet are up 22 percent compared to the 2016/17 final average. The pregame shows are also up 30 percent, and postgame has jumped 38 percent.On social media, TNT and NBA TV is up 10 percent over a year ago, with nearly 3.1 billion social impressions on Facebook and Twitter since Opening Night. Video views on those accounts are up 47 percent.How does the NBA buck an annoying trend that the NFL constantly tries to dismiss with a variety of excuses?Sure, the players don’t wear face-covering helmets or caps, might be a bit more expressive in an intimate visual setting, and on-going social media banter amongst star player feed into a unique fan connection.(One subliminal secret revealed from the Hilton ballroom: NBA commissioner Adam Silver pointed out that a 94-by-50 basketball court has the same visual ratio as a movie screen or flat-screen TV. Coincidence?)Schell was more blown away by how ratings took off recently for its NBA studio show, “The Jump,” on trade day, during a 90-minute special fueled by breaking news provided in Twitter by its own new media star, Adrian Wojnarowski.“It was unbelievable engagement,” said Schell. “That’s the element of surprise again. You literally can’t write that.”MADE IN AMERICA MEDIA MOGELSSo there was Miami Heat star Dwayne Wade, hosting an exclusive screening of a documentary, “Shot in the Dark,” at Pacific Design Center in West Hollywood on Thursday night. The film about the lives of NBA prospects dealing with gang violence and poverty in Chicago comes directly from a media company Wade has an executive producer role with: Chance the Rapper. Fox premieres the show Saturday. Video-on-demand Cheddar.com was all over reporting on it.Count that toward the other part of this baller equation: Players taking the media into their own hands. And we’re not just talking about The Players Tribune, which Kobe Bryant’s media company has helped finance.Bryant,the retired Lakers star building momentum with his Academy Award-nominated animated documentary based on his multi-media “Dear Basketball” project, can talk a whole new courtship language with current NBA star Kevin Durant, whose Thirty Five Media company created last April is in production with producer Brian Grazer on a drama called “Swagger,” based on Durant’s incredibly documented life.You likely already are aware of the plethora of L.A.-based media projects LeBron James is involved with, which led to him buying a Brentwood home and fueling talk of him playing for the Lakers or Clippers as soon as next season to consolidate his business ventures.A comedy titled “Uncle Drew,” starring Boston guard Kyrie Irving and others, will be in theatres this summer at a time when sports movies aren’t all that abundant any more.That’s how they’re drawing this up.If players viewed an ESPN or TNT as simply a middle man in the media delivery process, they are unapologetically taking their story into their own hands and portfolios.So how does a media giant like ESPN stay relevant without being looked upon as “the old way” of doing things?“Yes, Aaron Rodgers can tweet and we can post on Instagram his own story in his own certain way, but then (ESPN writer and TV personality) Mina Kimes can bring him to life in a way only a great writer can,” said Schell. “Some of bringing an athlete’s story to life is reacting, some of it is giving them a platform, and some of it is laying a level of authenticity or persuasiveness or authority on top of that. We aspire to be a platform for the best story tellers in the world, with all our talent and producers.“I still believe quality wins in a world of infinite choice, and that’s the bar we’re trying to get to every day.”The paradigm shift also continues to no longer emphasize creating a seven-minute piece for an “E:60” or parceling out a three-part, 50-minute window for an ESPN documentary, Schell added. Stories aren’t limited by length or platform, but are delivered more by what tells it best.“It’s really with the strategy and goal to think ‘story first’ — this is to me the important point,” said Schell, part of the executive team that created the “O.J.: Made in America” multi-part documentary for both TV and movie theatres that received an Academy Award for its quality and depth of work.“The ways fans interact with social feeds, apps, websites, our networks, it’s completely unshackled from traditional formats. And I think that’s a unique place we get to exist in today because we’re reaching all these people on all these different mediums.“Instead of ‘you have to fill X-number of column inches each day,’ we think of how to bring a story to life in the best possible form, and if variations of that story work across other platforms, you tell it differently. That’s what we aspire to do.”And that’s the story Schell is sticking to here.MEASURING MEDIA MAYHEMWHAT SMOKES== The Beverly Hilton ballroom has more sports cred – it was the host venue again for the 13th annual L.A. Sports Council’s Awards Show, hosted by Patrick O’Neal and recorded by Fox Sports West to air as a 90-minute program starting Monday at 8:30 p.m. with various replays.== At the urging of former sportscaster-turned-stage-performer Roy Firestone, Kareem Abdul-Jabbar told the Associated Press last week he plans to start a cross-country audience-interactive stage production this fall called “Becoming Kareem,” a title that comes from his 2017 young-adult autobiography (already listed on Amazon as No. 1 in Children’s Islam Books category). It’s the latest attempt by the 70-year-old Basketball Hall of Famer with UCLA and Lakers pedigree to reconstruct his media image that was often sullied by his own doing with the way he often handled himself with reporters during his playing days. “And that was very unfortunate,” Abdul-Jabbar told an AP reporter from his Newport Beach foundation office. “I think it kept me from a head coaching job and commercials and stuff because people wanted to assume the worst.” As long as Kareem can handle whatever the drama critics’ review of his stage show might be, he should hook enough patrons who will be engaged with the thought-provoking conversationalist. Warning: This could inspire Bill Walton to follow this same path.WHAT CHOKESIf not called out by the Boston Globe, which led to a sponsor revolt, one is left to wonder if Boston sports-talk radio station WEEI would not have gone to the extreme to finally suspending live programming Friday to hold an 12-hour mandatory sensitivity training meeting for its employees (particularly on-air talent) in the wake of ridiculous incidents and suspensions that did nothing to improve the company’s credibility or the genre’s overall purpose. Shirley Leung, a Globe columnist and self-defined Chinese America mother of two, urged the Red Sox and Patriots to speak up as broadcast partners and advertisers to withhold their spending. It happened. “WEEI hosts are entitled to free speech,” Leung wrote, “and so are their listeners, but the station routinely crosses a line that makes Boston a hostile place to live. Tune them out? No, we need to stop the vitriol.” After the sensitivity training was announced, Leung followed up: “Let’s hope they finally get it.” If they do, they’ll be making more sports radio history. In this burgeoning business of storytelling, and taking the most credit for the ability to cut and paste ideas, the NBA knows a good one when it can tell it in its own ways. And just because it has a certain height advantage here, there are no tall tales evident of a pro league boasting it has this whole media business figured out.As celebrated as its All-Star Weekend arrival in Los Angeles will be documented, capped off by Sunday’s exhibition game at Staples Center, there may have been an even bigger star-studded NBA Tech Summit at the Beverly Hilton last Friday morning. It punctuated just how influential the league’s basic knowledge and implementation has become of the current media landscape connects players and teams to its fanbase.Now it’s willing to share. Or drop a a handful of dimes, in basketball parlance.In a power-meeting ballroom more often shown off during Golden Globe presentations, here was the meshing of Clippers owner Steve Ballmer’s vision of artificial intelligence with an global strategy executive from Facebook trying to disprove a Silicon Valley myth about millennial short attention spans, relating a story about how viewers’ input resulted in reordering longer episodes of the “Ball in the Family” reality show. Newsroom GuidelinesNews TipsContact UsReport an Error read more