December 04, 2012Daily Rates & Viewpoints From the Officers & Staff of TIB.

Shameless Promotion!

The current economic and regulatory environment poses many issues – some old, some new – that must be addressed by investment portfolio managers.  Whether it’s dealing with the low rate environment, managing interest rate risk, or complying with new regulatory burdens, we seem to be dedicating more time (and a greater percentage of our assets) to our investment portfolios.

To address these issues, we’ve teamed with the Texas Bankers Association to host a two-hour online seminar that will tackle many of these important topics. 
Topics include:
1)      The de-mystification of the math behind the bond – and the role that simple math can play in your decision-making
2)      Commonly-employed strategies in today’s markets – their benefits and pitfalls
3)      Strategies for management of mortgage-backed securities portfolios
4)      Management and review processes for a municipal portfolio
While this presentation is being hosted by the Texas Bankers Association, it is also being syndicated to 46 other state banking associations (sorry, Rhode Island, Hawaii, and Alaska!).  If your banking association is not listed below, please check your association’s website or send me an email and I will forward you a link.
Texas Bankers Association click here
Oklahoma Bankers Association click here
Louisiana Bankers Association click here
Georgia Bankers Association click here
Illinois Bankers Association click here
California Bankers Association click here

Blake Scharlach Blake Scharlach
Vice President/TIB Capital Markets

Market Levels @ 7:57 AM CST

TIB Fed Funds & MMDA Rates - Previous Day
Agent 0.20% Prin 0.05% MMDA 0.30%
STAR Prin 0.10% STAR MMDA 0.35%
Key Indices/Commodities
1 - Month LIBOR 0.21% Dow Jones 12965.60
3 - Month LIBOR 0.31% NASDAQ 100 3002.19
1-Yr LIBOR 0.85% S&P 500 1406.80
1-Yr CMT 0.18% Spot Gold 1697.30
Prime 3.25% Spot Silver 32.95
3-yr LIBOR Swap/Offer 0.44% Spot Crude Oil 87.80
5-yr LIBOR Swap/Offer 0.75% CRB Index 300.26
3 Mo - Fed Fund Futures 0.14% 6 Mo - Fed Fund Futures 0.13%
US Treasury Yields US Non-Callable Agency Yields
Yield Maturity Yield Spread
0.00% 90 - Days    
0.03% 180 - Days    
0.19% 2 - Year 0.23% 4bp
0.28% 3 - Year 0.37% 9bp
0.58% 5 - Year 0.76% 18bp
1.58% 10 - Year 1.77% 19bp
2.76% 30 - Year    
139 BPs Yield Curve(2's-10's)
Sample 1x Callable Agency Issues
Description Call Date YTC YTM
FNMA 0.85 12/26/17 12/14 0.85% 0.85%
Select MBS Levels
Description Coupon Yield Spread/Duration*
15-Yr FNMA 3.00% 1.35% 90 / 3.85
30-Yr GNMA 3.50% 2.25% 89 / 7.29
*Duration @ 12 month Historical CPR
Morning Commentary: Reed Bateman

Treasury markets are higher this morning, mostly on fiscal cliff concerns, as we don’t have a lot of economic news to help move the markets.  An article in the Wall Street Journal this morning notes that December 18th could be the point of no return regarding the fiscal cliff, stating that if a resolution doesn’t get underway by then, there probably won’t be enough time to get it done before the December 21st recess.  Both parties have detailed their respective plans to counteract the looming cliff, but both plans are very far apart at this point.  It looks like a “kick the can” outcome is in store.  The 10-year note remains near recent lows at 1.60%.  The only economic release today is a New York manufacturing number, but we won’t have that until 9:45.  The next three days will give us plenty of jobs numbers, with ADP employment tomorrow, initial and continuous jobless claims Thursday, and nonfarm payrolls and unemployment rate on Friday. 

Information contained herein is based on sources we believe to be reliable but its accuracy is not guaranteed. Customers should rely on their own outside counsel or accounting firm for specific circumstances. The securities, yields or levels discussed herein are for illustration purposes and are not guaranteed, not obligations of any bank, thrift or other entity and are not insured by the FDIC.

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