Wednesday, April 8, 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 • 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 |
| 04/01/20 | 0.03 | 0.09 | 0.14 | 0.16 | 0.23 | 0.28 | 0.37 | 0.51 | 0.62 | 1.04 | 1.26 |
| 04/02/20 | 0.09 | 0.09 | 0.15 | 0.14 | 0.23 | 0.29 | 0.39 | 0.53 | 0.63 | 1.04 | 1.26 |
| 04/03/20 | 0.09 | .010 | 0.15 | 0.15 | 0.23 | 0.30 | 0.39 | 0.52 | 0.52 | 1.05 | 1.05 |
| 04/06/20 | 0.09 | 0.15 | 0.17 | 0.20 | 0.27 | 0.35 | 0.44 | 0.58 | 0.67 | 1.08 | 1.27 |
| 04/07/20 | 0.10 | 0.14 | 0.20 | 0.20 | 0.28 | 0.36 | 0.48 | 0.64 | 0.75 | 1.13 | 1.32 |
“Cushion Bonds” – The Call is Your Friend
An agency callable “cushion bond” is a callable bond offered at a coupon rate above the current market, and is subsequently priced at a premium. In today’s market, it is likely that many callable bonds may be called at the first call date. In a declining rate environment, taking on the additional call risk may offer additional opportunities.
Details below are on a short cushion callable offering.
The yield to call in 2/12/21 is 0.60%, providing 43bps spread to U.S Treasuries. If the bond goes to maturity, an additional three years, the YTM is 1.44%. This provides 102bps spread to U.S. Treasuries.
Please contact your CCB Capital Markets Group representative for a conversation to discuss liquidity and securities that may fit for your portfolio.
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