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Thursday,  November 5, 2020
 
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 • Natalie Regan • Aaron Stoffer • David Farris
 
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
10/29/20 0.08 0.09 0.10 0.12 0.16 0.20 0.38 0.61 0.85 1.39 1.62
10/30/20 0.08 0.09 0.11 0.13 0.14 0.19 0.38 0.64 0.88 1.43 1.65
11/02/20 0.09 0.09 0.11 0.13 0.16 0.20 0.38 0.63 0.87 1.41 1.63
11/03/20 0.09 0.10 0.12 0.14 0.17 0.21 0.39 0.65 0.90 1.44 1.66
11/04/20 0.08 0.10 0.10 0.12 0.14 0.18 0.33 0.55 0.78 1.33 1.55
                                                                                                                                                  Source: U.S. Department of Treasury as of 11/04/2020

                                                      The Day After

With the election behind us, sort of, the markets were happy yesterday with the uncertain result as the stock market soared and Treasury yields dropped 11 basis points on the 10 year maturity. It seems as though the market doesn’t really care who wins the Presidency as long as the House and Senate remain divided.

So now it’s back to dealing with the task at hand --- How to invest excess funds to maximize your bank’s earnings. As was mentioned in yesterday’s Portfolio Manager’s Report, a dearth of new issue municipal bond supply is expected in November leading to potentially higher yields now than later in the month due to simple supply and demand.  And as was mentioned in Tuesday’s missive, intermediate term municipals continue to be one of the best options in addressing the portfolio manager’s challenge of balancing income with the volatility risk associated with longer maturities. With these two factors in mind, consider the following new positions in our Capital Markets Group’s inventory:


Sedgwick County USD #261, Kansas
Unlimited Tax G.O. Refunding Bonds
Haysville Board of Education
S & P AA (BAM)
Moodys A-1 (underlying)
Dated:  12-1-2020  
1st Coupon:  5 -1-2021
Settlement:  12-1-2020
Non-callable
**Bank qualified**

PAR VALUE COUPON MATURITY YTM PRICE
250M 3.00% 11-1-2028 1.00 115.185
1,115M 3.00% 11-1-2029 1.10 116.094


These bonds offer taxable equivalent yields of 1.42% in 2028 and 1.56% in 2029 for “S” CORP banks.  Give us a call if the above offerings are a fit for your portfolio. 

We offer these bonds subject to change in price and availability.









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