Brokered CD Issuance

  • Brokered CDs provide a cost effective source of wholesale funding
  • They are FDIC insured (based on existing deposit insurance rules) and do not require collateralization
  • They allow banks to lock in long-term liquidity without disrupting local  market pricing or paying a local market premiums
  • Unlike typical retail deposits which can be redeemed prior to maturity, brokered CDs can only be redeemed early in the event of death or adjudication of insanity
  • Callable brokered CDs (callable by the issuer) offer attractive funding levels without creating additional risk
  • Combining brokered CDs and interest rate swaps is a great way to create cost effective term floating rate funding
  • Our affiliated swap provider, Vining Sparks Interest Rate Products, LLC, can structure and execute interest rate swaps allowing you to create your desired funding profile
  • Vining Sparks will help you issue brokered CDs utilizing our extensive distribution network