| Thursday, September 12, 2019 |
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|---|---|---|---|---|---|---|---|---|
| MANAGING DIRECTOR: Scott Carrithers PORTFOLIO SALES AND SERVICE: Steve Panknin • George Morris • Jeff Goble • Chris Thompson • Sean Doherty Kevin Doyle • Lonnie Harris • Mark Tranckino • Robert Schuyler • Tom Toburen • Josh Kiefer Nicole Burczyk • Kelley Frye • Natalie Regan • Aaron Stoffer • Chuck Honeywell |
| US Treasury Market | |||||||||||
| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 09/05/19 | 2.05 | 1.97 | 1.88 | 1.73 | 1.55 | 1.47 | 1.43 | 1.51 | 1.57 | 1.86 | 2.06 |
| 09/06/19 | 2.05 | 1.96 | 1.88 | 1.73 | 1.53 | 1.46 | 1.42 | 1.50 | 1.55 | 1.83 | 2.02 |
| 09/09/19 | 2.04 | 1.96 | 1.87 | 1.74 | 1.58 | 1.52 | 1.49 | 1.57 | 1.63 | 1.91 | 2.11 |
| 09/10/19 | 2.04 | 1.95 | 1.89 | 1.81 | 1.67 | 1.61 | 1.58 | 1.66 | 1.72 | 2.00 | 2.19 |
| 09/11/19 | 2.01 | 1.96 | 1.88 | 1.79 | 1.68 | 1.62 | 1.60 | 1.68 | 1.75 | 2.02 | 2.22 |
Bank Eligible Municipal Bonds
In the 2009 Safe Harbor Stimulus Bill there was a carve out for certain non-bank qualified issues to be treated as bank qualified. These eligible issues are not always clearly marketed as such, but a quick run down the following checklist will ensure you are able to treat a bond as bank eligible or bank qualified equivalent. If all criteria is not met, the non-bank qualified purchase would be subject to the TEFRA deduction. If the criteria is met, investors can pick up a few extra basis points over a comparable bank qualified offering.
Below you will find the bank eligible checklist along with a series of Aa2 Bank Eligible offerings. These are priced to the 2027 call and are +80-110bps over 2027 bank qualified new issues.
Below you will find the bank eligible checklist along with a series of Aa2 Bank Eligible offerings. These are priced to the 2027 call and are +80-110bps over 2027 bank qualified new issues.
Bank Eligible Checklist*
_ Issued in 2009 or 2010 OR Refunding a Bank Eligible Issue from 2009/10
_ Non-Bank Qualified Tax Exempt
_ New Money (Not a refunding – unless refunding a 2009/10 new money issue)
*Bank Eligible holdings collectively must not exceed 2% of a bank’s assets.
_ Issued in 2009 or 2010 OR Refunding a Bank Eligible Issue from 2009/10
_ Non-Bank Qualified Tax Exempt
_ New Money (Not a refunding – unless refunding a 2009/10 new money issue)
*Bank Eligible holdings collectively must not exceed 2% of a bank’s assets.
1,310M Available: 3.00% Coupon Due 9/1/33 Callable 9/1/27 @ 2.20% YTC (TEY: 2.79%
@ 21% / 3.14% @ 30%) / 2.50% YTM (TEY: 3.17% @ 21% / 3.57% @ 30%)
390M Available: 3.00% Coupon Due 9/1/35 Callable 9/1/27 @ 2.28% YTC (TEY: 2.89%
@ 21% / 3.26% @ 30%) / 2.60% YTM (TEY: 3.29% @ 21% / 3.71% @ 30%)
1,310M Available: 3.00% Coupon Due 9/1/37 Callable 9/1/27 @ 2.32% YTC (TEY: 2.94%
@ 21% / 3.31% @ 30%) / 2.65% YTM (TEY: 3.36% @ 21% / 3.79% @ 30%)
* Revenues include the proportionate share of 0.125% of Johnson County, KS retail sales tax approved and adopted by county voters in 2008. KOIC is entitled to one third (1/3) of all receipts of the 2008 Sales Tax and any Additional Sales Tax, after Johnson County Educational Research Triangle Authority (JCERTA) retains up to 2% of such receipts for payment of its administrative expenses
** This issue’s sole purpose is the refunding of a 2009 “new money” issue, therefore this issue is bank eligible, receiving the same tax treatment as a bank qualified bond.
All offerings are subject to prior sale and/or change in price.
This information is intended for institutional investors only. The material provided in this document/presentation is for informational purposes only and is intended solely for private use. Past performance is not indicative of future results. This material is not intended as an offer or solicitation for the purchase or sale of any financial instruments.
•Not FDIC Insured •No Bank Guarantee •May Lose Value