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Old 03-24-2023, 07:25 AM   #761
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5/5 from City National are all gone now.
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Old 03-24-2023, 07:25 AM   #762
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Just curious, is anyone not retired yet buying CDs or creating a ladder?
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Old 03-24-2023, 07:29 AM   #763
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Originally Posted by Freedom56 View Post
I don't know how much you can trust these ratings but this one is from Lendingtree.

https://www.depositaccounts.com/bank...ca.html#health

https://www.depositaccounts.com/bank...l-bank-ca.html

Thanks. City has a C- rating on Capitalization. For comparison, First Republic Bank with all its problems rated a C for Capitalization. But the resource helps.
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Old 03-24-2023, 07:32 AM   #764
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For anyone wanting the City National 5 yr 5% non-call CD. Like Freedom56 said its gone now, but I had also seen it available last night early, so the deal has been posted twice and may repost again.
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Old 03-24-2023, 07:44 AM   #765
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Thanks. City has a C- rating on Capitalization. For comparison, First Republic Bank with all its problems rated a C for Capitalization. But the resource helps.
All these banks that are issuing CDs are doing so to increase liquidity. Schwab has been offering CDs at higher coupons due to liquidity issues. Schwab made some bad bets on their investments. But the FDIC is back stopping your risk. Right now we are in a perverse situation where one of the safest asset classes next to treasuries is yielding more high grade corporate bonds.
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Old 03-24-2023, 08:00 AM   #766
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For anyone wanting the City National 5 yr 5% non-call CD. Like Freedom56 said its gone now, but I had also seen it available last night early, so the deal has been posted twice and may repost again.
schwab has it still (its going fast..)

City Ntnl Bank CA 5% CD 03/31/2028
178180GY5
Recently Issued
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Old 03-24-2023, 08:03 AM   #767
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^^^^
They also have a 3yr for 5.1 (Same bank) Matter of fact, the only term they have that isn't 5% or over is their 4 yr and it's 4.85.
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Old 03-24-2023, 08:08 AM   #768
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^^^^
They also have a 3yr for 5.1 (Same bank) Matter of fact, the only term they have that isn't 5% or over is their 4 yr and it's 4.85.
Snapped up $200k for my ladder.
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Old 03-24-2023, 08:09 AM   #769
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Seems like we’ve been in a perverse situation since 2008 when they lowered rates to zero & made QE the new normal. Basically backstopping the risk assets & making a mockery of people who save money. Now they’re unwinding that experiment.
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Old 03-24-2023, 08:16 AM   #770
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schwab has it still (its going fast..)

City Ntnl Bank CA 5% CD 03/31/2028
178180GY5
Recently Issued
just about gone!!!!
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Old 03-24-2023, 08:18 AM   #771
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All these banks that are issuing CDs are doing so to increase liquidity. Schwab has been offering CDs at higher coupons due to liquidity issues. Schwab made some bad bets on their investments. But the FDIC is back stopping your risk. Right now we are in a perverse situation where one of the safest asset classes next to treasuries is yielding more high grade corporate bonds.

I'm not concerned about loss of capital within FDIC limits. I've been buying short duration CDs and don't care too much about bank soundness. However, moving out to a 5 year investment, reinvestment risk gets my attention. That risk is that my 5 year CD bank fails 2 years from now and I have to either accept much lower terms from the new bank or cash it out and reinvest it, possibly at a much lower rate. So, for longer maturities I'm paying attention to bank soundness.
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Old 03-24-2023, 08:24 AM   #772
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schwab has it still (its going fast..)

City Ntnl Bank CA 5% CD 03/31/2028
178180GY5
Recently Issued
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Originally Posted by lordjust View Post
just about gone!!!!
That batch is gone, but two minutes later a new batch appeared with the same CUSIP. And some new ones popped up for 18mos @ 5.4%
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Old 03-24-2023, 08:25 AM   #773
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I'm not concerned about loss of capital within FDIC limits. I've been buying short duration CDs and don't care too much about bank soundness. However, moving out to a 5 year investment, reinvestment risk gets my attention. That risk is that my 5 year CD bank fails 2 years from now and I have to either accept much lower terms from the new bank or cash it out and reinvest it, possibly at a much lower rate. So, for longer maturities I'm paying attention to bank soundness.
I have had jumbo CDs at WAMU and they just transferred to JP Morgan after WAMU folded in 2008 and matured per the terms. I also had callable CDs from Wachovia Bank that transferred to Wells Fargo after Wachovia folded but two months later they were called by Wells Fargo. It really depends on the situation.
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Old 03-24-2023, 08:30 AM   #774
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That batch is gone, but two minutes later a new batch appeared with the same CUSIP.
Back up on Schwab with over 11,000 available
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Old 03-24-2023, 08:45 AM   #775
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This one popped up at Schwab this morning:

Zions BanCorp, Ntnl UT 5.4% CD 09/27/2024, CUSIP 98970LC43

I bought some for two of my accounts. 5.4% for 18 months is as good as it gets right now.


Edit: As of 9:47AM EDT there are still over $20mm worth available.
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Old 03-24-2023, 08:55 AM   #776
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Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.
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Old 03-24-2023, 08:57 AM   #777
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Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.
Nice, Freedom56! I am not purchasing in those quantities but it's a great tip for those who do.
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Old 03-24-2023, 09:08 AM   #778
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I don't know how much you can trust these ratings but this one is from Lendingtree.

https://www.depositaccounts.com/bank...ca.html#health

https://www.depositaccounts.com/bank...l-bank-ca.html
Bauer Financial is my go-to - this is their business.

https://www.bauerfinancial.com/
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Old 03-24-2023, 09:15 AM   #779
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^^^^^


Very nice, I like it. Thanks
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Old 03-24-2023, 09:16 AM   #780
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Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.
Freedom: Just wondering when buying jumbo CD's why is the discount not listed online at Fidelity. Why would I have to bother with fixed income desk,unless they are trying to hide any discount. Seems like they should state this up front,when buying online and apply the discount automatically,for jumbo CD's.
Thanks
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