Friday, July 26, 2024 |
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MANAGING DIRECTOR: |
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US Treasury Market |
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| Date | 1 mo | 3 mo | 6 mo | 1 yr | 2 yr | 3 yr | 5 yr | 7 yr | 10 yr | 20 yr | 30 yr |
| 07/19/24 | 5.35 | 5.33 | 5.19 | 4.88 | 4.51 | 4.28 | 4.16 | 4.18 | 4.24 | 4.55 | 4.44 |
| 07/22/24 | 5.37 | 5.32 | 5.19 | 4.89 | 4.51 | 4.29 | 4.17 | 4.19 | 4.25 | 4.57 | 4.47 |
| 07/23/24 | 5.37 | 5.31 | 5.15 | 4.87 | 4.48 | 4.26 | 4.15 | 4.17 | 4.24 | 4.56 | 4.47 |
| 07/24/24 | 5.37 | 5.31 | 5.16 | 4.84 | 4.43 | 4.26 | 4.17 | 4.21 | 4.28 | 4.63 | 4.54 |
| 07/25/24 | 5.38 | 5.30 | 5.16 | 4.84 | 4.43 | 4.24 | 4.13 | 4.17 | 4.24 | 4.57 | 4.48 |
The data in the table above is static as of the time it was pulled, so rates may have changed. Treat all data in this table and PMR as indications only and availability is
always subject to change. This information was pulled manually from sources we believe to be reliable. New source, as of 12/12/2022, Bloomberg, L.L.P. As of: close
of business 07/25/2024.
TAXABLE MUNIS FOR THE WIN
For the last several decades, taxable municipal bonds have provided an excellent avenue for banks, particularly C-Corps, to achieve higher returns while still investing in state and local credits. This was particularly true back in 2009 and 2010, when Build America Bonds (BABs) were introduced, swelling the supply of taxable munis, and again in 2019-2021, when low nominal yields allowed municipalities to use taxable bonds as a means of refunding higher yielding tax-free debt.
As shown in the chart below, the supply of taxable municipal bonds has diminished in recent years as issuance has tailed off and many BABs have either matured or been called for redemption. As a result, we are always on the lookout for high quality taxable offerings with structures that will perform well over time. The following offering has a defensive 5.868% coupon, good call protection (9 years), and is rated in the top AAA category by both Moody’s and Standard & Poor’s. The yield to call and yield to maturity both offer roughly 70 basis points spread to the corresponding nine and twenty-year Treasuries.
Please reach out to your CMG representative if you would like to discuss this offering or if we can assist you in any way.
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