At that time, we were paying double-digit rates on CDs of less than 36 months (our cost of capital) and trying to lend it out at a profit. The net loan rates, after bad debt, were inadequate to pay the cost of deposits. Seeing the writing on the wall I left the bank for a new role.
Bond holders required a risk-related return, so this made debt financing for the bank too high to allow for supporting loans to customers. The bank shut down four years after I left.
A guy named Warren Buffet was the controlling investor in the parent company of the bank. How do investors such as Warren Buffet react to the cost of debt (interest rates)?
2. Interest rates fell for decades until recently so investors generally had only temporary losses (if they held on) in the bond market based on interest rates. We may now be in a long period of increasing rates. Should investors still consider bonds?
3. What do you think an organization can do to continue the use of company performance while maintaining employee motivation?
4. What are some thoughts on what should be prioritized for an organization implementing PMS?
5. For everyone-what are some ways the HR can check for bias in the performance management system?
