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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.