Deposit Funding Compass Week of December 28, 2023

We’d like to highlight some funding specials that are somewhat speculative given they are 10-20 BPS lower than what is currently outstanding on the same terms, however, with a lack of product overall and continued strong demand, we feel that we can move appreciable volume at the stated rates. We would be willing to firm the first $1MM on each and work towards a total of $5-10MM, or any targeted notional amount. 

We’d also like draw attention to callable CD structures that would allow the issuing bank to cancel the funding in full after the 3-6 month lockout period at no additional cost, if interest rates were to move lower into the tenor. Callable CD structures allow for term funding with the built-in cancel option that provides balance sheet flexibility into what could shape up to be a volatile bond market in the near term. Having the ability to cancel and refinance the funding should hold a lot of appeal and value. Please see today’s funding opportunities. 

Additional Resources

Deposit Funding Compass Week of January 11, 2024

Americans paid more for housing and driving in December as inflation increased and the CPI registered 3.4%. On an annual basis, the so-called core measure increased 3.9%.  Early reactions show the rates market interpreting this as a challenge the Federal Reserve will cut interest rates as imminently as previously thought. The odds for a cut at the Jan…
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CU Funding Compass Week of January 5, 2024

Juxtapose data points have somewhat confused traders this morning as a sharp sell off in rates following the non-farm payroll report has been tapered by a dismal ISM release. US job growth picked up in December(+216k) and wage gains exceeded expectations, diminishing prospects for an imminent Federal Reserve interest-rate cut initially. Expectations for a March cut were…
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Deposit Funding Compass Week of January 5, 2024

Juxtapose data points have somewhat confused traders this morning as a sharp sell off in rates following the non-farm payroll report has been tapered by a dismal ISM release. US job growth picked up in December(+216k) and wage gains exceeded expectations, diminishing prospects for an imminent Federal Reserve interest-rate cut initially. Expectations for a March cut were…
Read More...

CU Funding Compass Week of December 28, 2023

We’d like to highlight some funding specials that are somewhat speculative given they are 10-20 BPS lower than what is currently outstanding on the same terms, however, with a lack of product overall and continued strong demand, we feel that we can move appreciable volume at the stated rates. We would be willing to firm…
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CU Funding Compass Week of December 20, 2023

Rates are down considerably week over week and at their lowest levels since mid-summer. Share Certificate issuance had a moderate uptick late last week/early this week but with limited days remaining in the month and two holidays to account for it looks prudent to begin focusing on 2024 business. Please see our current funding opportunities…
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Deposit Funding Compass Week of December 20, 2023

Rates are down considerably week over week and at their lowest levels since mid-summer.  CD issuance had a moderate uptick late last week/early this week but with limited days remaining in the month and two holidays to account for it looks prudent to begin focusing on 2024 business. Please see our current funding opportunities the…
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Deposit Funding Compass Week of December 14, 2023

Market Commentary: The FOMC left its policy rate unchanged yesterday at 5.25%-5.50%, as expected, but the totality of Fed communication was dovish enough to spur a significant bond rally throughout the afternoon. 2s fell almost 30bp by the end of trading, 5s fell below 4.00% for the first time since July, and 10s fell to…
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CU Funding Compass Week of December 14, 2023

Market Commentary: The FOMC left its policy rate unchanged yesterday at 5.25%-5.50%, as expected, but the totality of Fed communication was dovish enough to spur a significant bond rally throughout the afternoon. 2s fell almost 30bp by the end of trading, 5s fell below 4.00% for the first time since July, and 10s fell to…
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Deposit Funding Compass Week of December 6, 2023

The ADP employment report showed that 103,000 jobs were added in the private sector in November. This was below the consensus expectation for today’s report and also below the consensus expectation for Friday’s BLS report (headline: 187k, private: 160k). Rate markets priced for deep cuts in early 2024 may get a shock next week if…
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CU Funding Compass Week of December 6, 2023

The ADP employment report showed that 103,000 jobs were added in the private sector in November. This was below the consensus expectation for today’s report and also below the consensus expectation for Friday’s BLS report (headline: 187k, private: 160k). Rate markets priced for deep cuts in early 2024 may get a shock next week if…
Read More...