Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[erkevin]

True Confession: about a year ago, I toyed with the idea of buying some of those Credit Suisse bonds at 7%. Too big to fail, right?

 

[pb4uski]

True Confession: about a year ago, I toyed with the idea of buying some of those Credit Suisse bonds at 7%. Too big to fail, right?

CS regular bonds survived intact. The only ones to fail were AT1 notes which were only available to certain institutional investors.

 

[erkevin]

CS regular bonds survived intact. The only ones to fail were AT1 notes which were only available to certain institutional investors.

TDA no longer lists them; I assumed they had been defaulted on.

 

[Freedom56]

CS regular bonds survived intact. The only ones to fail were AT1 notes which were only available to certain institutional investors.

Recall that the selling point of bond funds is that they have better access to bonds than individual bond holders and now there are still $275B AT1 bonds lurking in funds.

 

[lordjust]

CS regular bonds survived intact. The only ones to fail were AT1 notes which were only available to certain institutional investors.

so why are we seeing 22553QQS9 such high ytm if so?

 

[Car-Guy]

So with the Fed's .25 rate hike today, (and early comments I've seen from them) IMO, we should start seeing plenty of 1 and 2 year CD's hitting 5.5 to 5.75% within a few weeks. Great timing for me.

 

[ShokWaveRider]

So with the Fed's .25 rate hike today, (and early comments I've seen from them) IMO, we should start seeing plenty of 1 and 2 year CD's hitting 5.5 to 5.75% within a few weeks. Great timing for me.

Sounds good, but I am not holding my breath.

 

[Car-Guy]

^^^^
Other than 50 to 100k for SWVXX, my plan now is to go all in with 1 and 2 year CD's (with spare cash at Schwab) no later than mid April. It's time, for me anyways. YMMV

 

[Freedom56]

Wait for the Powell conference and listen for signals that the Fed intends to keep rates at these levels for much longer rather than the 1% Fed funds rate that the market is projecting for 2025. The stock market casino wants easy money and savers want higher for longer. The best scenario for the "Golden Period" right now is a long pause into 2025.

 

[explanade]

Wait for the Powell conference and listen for signals that the Fed intends to keep rates at these levels for much longer rather than the 1% Fed funds rate that the market is projecting for 2025. The stock market casino wants easy money and savers want higher for longer. The best scenario for the "Golden Period" right now is a long pause into 2025.

Got an alert that Fed plans only one more hike this year.

 

[pb4uski]

so why are we seeing 22553QQS9 such high ytm if so?

Dunno. FINRA shows a trade today at a 10.24% yield.

 

[jldavid47]

So with the Fed's .25 rate hike today, (and early comments I've seen from them) IMO, we should start seeing plenty of 1 and 2 year CD's hitting 5.5 to 5.75% within a few weeks. Great timing for me.

I don't think that's a slam dunk but I hope you are right.

 

[ShokWaveRider]

We need to keep a sharp eye on (in my case Schwab) brokers for the next level of brokered CDs. Waiting ..... Wainting ....

 

[Car-Guy]

I don't think that's a slam dunk but I hope you are right.

Nothing is guaranteed but based on the last year trends, (and back in the day when there wasn't a war on savers) it's a pretty good bet, IMO.

 

[Car-Guy]

Interesting (to me anyway) roughly half of the available 1 and 2 year CD's at Schwab "disappeared" in the last 2 hours between Powells rate hike and the market closed today. Of course the highest paying ones.

 

[Freedom56]

With the rush to safety and treasury yields falling, the next batch of CDs will reset much lower. If the yield curve stays inverted for an extended period of time, individual investors can buy the short end and be okay, but passive funds (short, intermediate, long) will slowly self-destruct since you cannot continue to sell at the short end at a loss and buy at the long end at higher prices. The buy high and sell low model cannot run forever.

 

[ShokWaveRider]

There is a 1y 5.5% at Schwab this evening.

 

[Car-Guy]

With the rush to safety and treasury yields falling, the next batch of CDs will reset much lower. If the yield curve stays inverted for an extended period of time, individual investors can buy the short end and be okay, but passive funds (short, intermediate, long) will slowly self-destruct since you cannot continue to sell at the short end at a loss and buy at the long end at higher prices. The buy high and sell low model cannot run forever.

Maybe, but I hope you are wrong. I just saw (last 30 mins) two new issue 1yr CD's pop up at Schwab for 5.4 and 5.5%. Of course 2 new CD's don't make a trend. "Stuff" is happening pretty fast.

 

[ShokWaveRider]

I just saw (last 30 mins) two new issue 1yr CD's pop up at Schwab for 5.4 and 5.5%.

Are you tempted? B+ rated California Bank. The name says it all..... We "Hope" we can pay you in a years time. LOL

 

[Car-Guy]

Just saw that too... "Bank of Hope" And it's located in California... But at least it's in LA and not San Jose.

 

[ShokWaveRider]

Just saw that too... "Bank of Hope" And it's located in California... But at least it's in LA and not San Jose.

12th largest bank in Ca. A Rated by depositaccounts.com I may jump in for $100k. I have $800k left to allocate.

 

[Freedom56]

Maybe, but I hope you are wrong. I just saw (last 30 mins) two new issue 1yr CD's pop up at Schwab for 5.4 and 5.5%. Of course 2 new CD's don't make a trend. "Stuff" is happening pretty fast.

Are you seeing higher CD rates at 2,3,4, and 5 years? The shortest end will continue to move up with rate hikes but the spread with treasuries at 2,3,4, and 5 years continues to grow. This will pull CD rates down at those durations.

 

[dobig]

JPMorgan has a callable 1 yr CD at 5.3% at Fidelity DSN3M4167.


Personally I'm quite content getting 4.85% (with bonus) in my savings account at Marcus for the liquidity.

 

[Free bird]

Have we seen the peak in rates for the long end?

 

[Freedom56]

Have we seen the peak in rates for the long end?

I don't believe so. The long end treasuries are artificially being held low on the belief that the Fed will be forced to cut the Fed funds rate to 1% by 2025.