Archive: August 2019

The Fallout from Negative Interest Rates in Germany

Germany continued to reduce interest rates in August to a negative 0.9% for the 2-year Bund and negative 0.75% for the 10-year Bund. The result of negative rates is a stronger US dollar, rising 8.8% from the lows of 2018. A strong dollar limits US exports, contracts multinational corporations profit margins,…

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Brokered CDs Offer an Attractive Alternative

Central banks around the world are lowering interest rates, causing the short-term yields in the U.S. to exceed long-term yields. Brokered CDs offer the highest, most secure yields with 1 to 5-year maturities. Both Germany and China are using interest rates and currency levels to control their respective economies relative to…

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Credit Unions: A New Growth Opportunity in Brokered CDs

Credit unions issuing brokered CDs averaged just 5 institutions per quarter from 2008 to 2015. Beginning in the 2nd quarter of 2015, these institutions accelerated from 5 to 147 by the 2nd quarter of 2019. IDC Financial Publishing (IDCFP) estimates by 2020, credit unions with brokered CDs outstanding could reach 300…

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