I would not be surprised if we begin to see banks issuing earnings warnings this month.

I expect we will hear from more than a few CEOs in April that the record pace of interest rate increases is beginning to eat (even more) materially into Net Interest Margin.

There is clearly a scramble to raise cash for some banks.

The big pop in CD rates is raising liquidity concerns for the banks.

I will continue to move money into CDs with maturities between 3 and 24 months.

Brokered CDs yielding ~5% is a compelling risk-free return at a time of significant uncertainty.

There are four implications, in my view, to the current CD rate environment:

An 11-month CD callable in 3 months has an APY of 5.35.

1-year CD callable in 3 months has an APY of 5.50%.

Four of the 5.25% APY CDs mature in one year, four in 18 months, and five in two years.Īll of the aforementioned CDs are non-callable.

Five of those pay interest monthly, five semi-annually, and three at maturity.

Thirteen of the Brokered CDs today have a 5.25% APY.

About ten days ago, there were less than 50 Brokered CDs available.Īs of March 9, 2023, almost half the Brokered CDs available at my source for Brokered CDs yield greater than 5%. My favorite source for brokered CD rates today has 109 different Brokered CDs available in which I can park money. Safest investments to park money during a storm.Santiago/Getty Images News Why I Monitor Brokered CD Rates We endeavor to ensure that the information on this site is current and accurate but you should confirm any information with the product or service provider and read the information they can provide.Michael M. SuperMoney strives to provide a wide array of offers for our users, but our offers do not represent all financial services companies or products. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). The owner of this website may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

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