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  4. Long-Term Non-Callable Brokered Cds Have Disappeared

Long-Term Non-Callable Brokered Cds Have Disappeared

CDmanFL
  |     |   286 posts since 2019

Been trying to buy some non-callable brokered CDs in the 3, 4 and 5 year range at the rates that were around last week at this time and they are all gone. What happened? Is this the end of the 5 year non-callables at 5%? I picked some up last week and was loving it and then transferred more money to Schwab and noticed they all evaporated into thin air. Is the party over? I hope not!

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Answers
w00d00w
  |     |   360 posts since 2012
This from Ken's weekly CD rate summary:

Just like the Treasury yields, the CD yield curve continues to flatten, and in some cases invert as more banks offer their highest rates on short- and mid-term CDs. This may make the CD choice more difficult. If we think rates are reaching their peak, do you lock into a 6% 1-year CD or a 5% 5-year CD? I doubt this will be the exact choice, but it may be something like this.

You can see this flattening CD yield curve in the average online CD yield changes. In October, the average 5-year online CD yield increased 36 bps from 3.27% to 3.63%. The average 1-year online CD yield increased 46 bps from 3.15% to 3.61%. On November 1st, the average online 5-year CD yield exceeded the 1-year average by only 2 bps. I wouldn’t be surprised if this inverts next month.

The brokered CD rate curve is essentially flat beyond one year. with subsequent rate hikes, it could also invert.
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sams1985
  |     |   781 posts since 2022
The market value of my 4.3% Cap One brokered CD just went up today...not a good sign.
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sams1985
  |     |   781 posts since 2022
There's a discover 4 year brokered non-callable @ 4.85% availability on Fidelity. Not sure what it was a week or two ago? Can someone chime in? I think it was 4.9 or 4.95?
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Kirkland
  |     |   374 posts since 2014
if it helps, american express had a 4 year brokered non-callable available two weeks ago at 4.95% but never saw a discover 4 year
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John19
  |     |   395 posts since 2022
Discover 4.9% 5 year brokered CD available now.
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sams1985
  |     |   781 posts since 2022
Don't see it on Fidelity.
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John19
  |     |   395 posts since 2022
On Schwab selling fast.
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Robb
  |     |   322 posts since 2018
Discover has both 4/5 year non-callable CD’s at 4.85/4.9%.
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sams1985
  |     |   781 posts since 2022
Not available on vanguard or fidelity unfortunately.
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NFO
  |     |   66 posts since 2022
Yep, and those went fast at Schwab.
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RichardW
  |     |   810 posts since 2019
sams1985…to answer your question, Discover Bank offered a 4-year new issue, non-callable brokered CD at 4.95% on 11/4/2022
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ocsteve
  |     |   96 posts since 2010
On Fidelity Investments, the non-callable 4 year brokered CDs were at 4.95% on 11/3, 11/4 and 11/9. The highest 4 year CDs are most recently 11/16, at 4.10% with a small volume available.
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NFO
  |     |   66 posts since 2022
Fear and greed on the DA.com website. You can bet that interest rates will move higher in the near-term...at least a half-point on the FFR in Dec alone. Every time the equities market tries to talk itself into an "easing" narrative, Fed governors privately and publicly remind everyone what's really happening. The tone and direction of the bond market today was significantly more bearish than last week. The 5yr 4.9% CD I purchased a couple of days ago has already seen a .6% drop in estimated market value. That's an indication of higher near-term rates, not lower.
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sams1985
  |     |   781 posts since 2022
Hope you’re right , the value of my 5 year 4.3% from early October has risen this week.
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GH1
  |     |   1,054 posts since 2017
I agree rates will move higher again. Fed speak has already said possibility of 7 percent. Do i think will go that high. Probably not but clearly they are telling us its going up. The markets keep fighting the FED. And it will take alot longer to control current inflation. Just ladder your cds. No one will ever get all top or bottom.
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Listedguru
  |     |   63 posts since 2022
So Powell is going to be speaking on Nov 30th at 1:30 PM EST @ The Brookings Institution just two days before the feds blackout period. Also on the following day Dec 1st we'll get the feds preferred inflation reading the PCE so that should be interesting.

Also so this little tidbit from Stifel economists saying the FFR may need to go to 8-9%: Pretty good read with some other economists weighing in

https://www.morningstar.com/news/marketwatch/20221118530/did-bullard-undershoot-stifel-economists-say-fed-funds-rate-may-need-to-go-to-8-9
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Kirkland
  |     |   374 posts since 2014
I heard some comment today that the immediate terminal rate was moved up to 5.75%. I thought it interesting with the market media saying rates had already peaked, that the new small issuers of 5 year brokered cd's at artificially low rates were not being bought, and neither were the callable ones in 3 months at 5% being bought. The Fed only signaled that slowing rate increases would be appropriate "at some point", so still overweight cash, underweight equities.
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CDsuckers
  |     |   70 posts since 2022
Treasury yields are below both brokered and direct CD's. Not a good sign.
However, I just noticed that the stock market's early morning rally has just gone negative.
So, maybe there's hope yet.
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CDmanFL
  |     |   286 posts since 2019
I certainly hope that those of us who have been waiting for even higher rates didn’t miss the boat. I’m savoring to see those 5% 5 year CDs again, non-callable of course.
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sams1985
  |     |   781 posts since 2022
Unfortunately, "inflation is over" is the dominant narrative right now, despite it being opposite to reality. This weekend i said 5% CD's will return and i still think they will but not feeling as confident. There will be another rate hike in December so let's see. The market value of my 4.3% non-callable 5 year CD on fidelity has also not gained anything this week.
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John19
  |     |   395 posts since 2022
I just want to see a 5 year brokered CD listed at this point.
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sams1985
  |     |   781 posts since 2022
There’s been plenty of those on fidelity. Multiple daily but they sell out very quickly despite being callable.
Edit - there’s one available right now from Medallion bank. 5% 5 year Callable
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GH1
  |     |   1,054 posts since 2017
Still finding on etrade
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NFO
  |     |   66 posts since 2022
Don't think for a moment that we've seen the top.
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chaser14
  |     |   61 posts since 2019
This morning on Fidelity a 5 year non callable Synchrony Bank CD is 4.00% but directly through Synchrony it’s 4.40%. What gives? Of course I just pulled all my money out of Synchrony last week and moved it to Fidelity specifically to purchase brokered CD’s. Very frustrating and disappointing.
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MY2CENTSWORTH
  |     |   436 posts since 2016
CHASER14, The direct certificate from Synchrony that is 4.40% is only for 15 months and drops to 4.30% for 60 months.
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chaser14
  |     |   61 posts since 2019
You’re right. Thank you. 4.30% for 36,48 and 60 months. Now I have to figure out what to do with my funds at Fidelity. I was really hoping for a good 4 and 5 years brokered non callable CD.
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sams1985
  |     |   781 posts since 2022
Buy FZDXX if you're holding more than 100k. It's earning 3.79% and rising.
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chaser14
  |     |   61 posts since 2019
Thanks sams1985. That’s what I did thinking it would be a great place to hold cash on a three jumbo CD’s that matured this fall until rates peak on 4 & 5 year CD’s to complete my ladder. Now I’m worried about availability at Fidelity and rates on those longer term CD’s when direct bank CD’s are paying more than 4%. I still have cash at banks too and chickened out and picked up a 4 year CD at Capital One yesterday for 4.20% where I have a savings account. I also have an account and Synchrony and think I’ll get a 5 year CD this week for 4.30%. I should be happy because the CD’s that just matured had interest rates of 2.50%, 2.60% & 2.79%. I’d love to wait for 5% on long term CD’s but the whole scenario is making me nervous and I’m afraid we just won’t get there.
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sams1985
  |     |   781 posts since 2022
Yeah i was a little annoyed that every brokerage got the Discover 5 year non-callable 4.9% last week EXCEPT Fidelity...go figure.
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CharleyRay
  |     |   12 posts since 2022
Are there fees and or commissions when buying brokered CDs? If it's a 5 year term, when do the fees end?
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sams1985
  |     |   781 posts since 2022
No fees or commissions on buying new issue brokered CD's.
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NFO
  |     |   66 posts since 2022
No fees or commissions of any type when buying new issues, at least with the brokerages that I use.
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sams1985
  |     |   781 posts since 2022
American Express non-callable 3 year @ 4.9% available on Fidelity as of now.
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Choice
  |     |   937 posts since 2020
FIs think rates are going down and see no need for non-callable brokered CDs
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John19
  |     |   395 posts since 2022
Might be a good idea to buy some now, then wait until the December rate hike/inflation report to buy more. What if inflation ticks back up? Still probably 100 points of rate hikes ahead.
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sams1985
  |     |   781 posts since 2022
Logic and precedent would dictate that's how things will go but i have no faith in the Fed anymore. Inflation could meet exceptions next month and the market will roar and the fed will release dovish statements despite the actual figure being egregiously high.
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GH1
  |     |   1,054 posts since 2017
JP Morgan 2 year callable CD now ar 4.9 Percent
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