The Baker Group will now be underwriting Brokered CDs to strengthen our product offerings within our suite of services. This allows us to offer a more robust market for CD issuance as a funding vehicle to our clients. Brokered CDs are an efficient way to manage interest rate risk and liquidity needs by raising deposits through issuance involving a single certificate. CDs are issued in book entry form and are held by the Depository Trust Clearing Corporation (DTCC).
DTC Brokered Deposits
- Cost effective versus local markets or other wholesale funding alternatives
- Part of an expansive national book-entry market
- Flexible structuring
- Maturities of 1 month to 20 years
- Bullet, callable, or step-up
- Monthly or semi-annual interest payments
- Rates are set and transactions settle weekly
- A single certificate per maturity
- Excellent resource for contingency funding plans
- Can match funds according to asset/liability needs
- No collateral required
- No early withdrawal feature (except extraordinary circumstances)
- Permits gathering of deposits without the burden of marketing and administrative costs
- Broad distribution and investor demand
- Access to intermediate and long-term deposits which may not be available in local markets
- Ability to restrict sales in designated geographic areas
DTC Eligible Certificates of Deposit
DTC eligible CDs provide an operational and cost-effective way to raise large amounts of deposits through issuance involving a single certificate. DTC eligible CDs are part of a national book-entry market in which rates are set and transactions are settled weekly.
- Delivery: Issued in book entry form only and held by the Depository Trust Clearing Corporation (DTCC). One master certificate represents each issue (CUSIP).
- Distribution: CDs are placed with investors through our internal sales force and our selling group representing hundreds of broker dealers nationwide.
- FDIC Insurance: Deposits are eligible for deposit insurance coverage as dictated by §337.6 of Title 1 2 CFR.
Typical Issuance Period
- Between 7 and 10 days including pricing, execution of documents, sales, and settlement.
- We work with the issuer throughout the entire process to ensure ease of transaction.
Services Provided Exclusively by The Baker Group
- Interest payment schedule
- Information on setting up ACH account with DTC
- Support for timely settlement
- Maturity notice and current roll rates
- ALM and IRR monitoring through our IRRM® and Dynamic Liquidity Monitor
- Assistance with AL Policy and Contingency Funding planning
- Guidance with call reporting and auditor/examiner compliance
For additional information or to receive our weekly rate sheet, please contact your Baker representative or email funding@GoBaker.com.