02 Debt - Banks Flashcards
FDIC Insures
? Rate
250k
any amt above unsecured
Negotiable CD (Jumbo)
Non-Negotiable CD
Amount?
Where traded?
unsecured over FDIC insurance of 250k
100k min
traded on open mkt
Negotiable CD (Jumbo)
Non-Negotiable CD
no secondary market
Brokered CD
issued by bank direct to customer
can call early if interest down
Step Up / Down
fixed interest for period
then goes up or down
Banker Acceptances
Definition, purpose, collateral
Price
Time
middle man purchase merchandise to sell
facilates foreign trade
backed by ltr of credit
issued at discount
270 days to maturity
Fed Fund Loans
cash reserve requirement
if bank short, borrows form another bank
Repurchase Agreements
Repos
bank short on cash, sells sec to govt w/
agreement to repurchase later at higher amt
between banks & Fed Reserve
open repo buyer decides
Interest (low to high)
Fed Funds Rate
Discount Rate
Broker Call Loan Rate
Prime Rate
Most volatile
daily ave Fed. Fund member banks
rate charged by commerical loans to each other
for over night 1 MM loans
Interest (low to high)
Fed Funds Rate
Discount Rate
Broker Call Loan Rate
Prime Rate
rate charged by Fed Reserve to member banks for short-term loans
Interest (low to high)
Fed Funds Rate
Discount Rate
Broker Call Loan Rate
Prime Rate
rate by banks to BD for $ to lend margin acct. customers
Interest (low to high)
Fed Funds Rate
Discout Rate
Broker Call Loan Rate
Prime Rate
rate by money ctr banks to corp customers for unsecured loans
Collateralized Mortgage Obligations (CMOs)
def
pool of mortgages or
mortgage backed securities backed by GNMA, FNMA, FHLMC
Collateralized Mortgage Obligations (CMOs)
yeild
tax
yeild higher than treasury
taxed @ local & fed levels
Collateralized Mortgage Obligations (CMOs)
evaluations
use PSA to evaluate, pass thru certs
PSA = 100 stable
PSA . 100 pre-payment speed up
PSA
