Amherst Securities Group : CD/Institutional

Institutional Funding through DTC-Eligible CDs

Increasingly, there has been tremendous competition for funds among depository institutions. In many cases, local deposits no longer satisfy funding needs. As a result, brokered Certificates of Deposit have been a viable and increasingly popular funding alternative for hundreds of financial institutions.

How Does it Work?

ASG will help guide your institution through the entire process. We begin by supplying the initial documentation, negotiating funding levels, and providing marketing and assistance with the settlement process. We will use Depository Trust Company (DTC) eligible CDs to provide an efficient way to raise deposits through issuance involving a single certificate. DTC eligible CDs are part of a national book entry system that allows the depository to raise funds via electronic transfer, while interest and principal payments will be made via the DTC system.

Amherst as a Strategic Partner

Given the well-capitalized position of Amherst Securities Group (ASG), we can specialize in firm commitment offerings as opposed to best efforts. What does this mean to your bank? There are no offering periods. We negotiate a funding level and you receive funds on settlement date. ASG also provides additional secondary market support after the sale.

The Advantage of Amherst Securities Group Distribution

Since 2000 Amherst has provided Government Sponsored Enterprises with over $14 billion in funding. ASG has seen tremendous growth and expansion during this period. We have been a competitive underwriter of Government Agency issues in each of the last 4 years. This has enabled us to establish significant distribution channels and positions us to offer competitive funding to banks by accessing our network of over 500 broker dealers as well as an impressive institutional customer base. What does this mean to your bank? This enables you to reach a far greater number of clients than the traditional local depositor base as well as providing access to quick and efficient funding.

The Versatility of DTC-Eligible CDs

Amherst uses several types of structures to meet your funding requirements. We offer maturities ranging from 6 months to twenty years. The most common version of brokered certificates of deposit is the non-callable or bullet. These are nearly identical to the basic CD that customers purchase at their local bank. Other structures include callable, fixed or floating, and step rates. Our knowledge of the market will help advise you on the marketability of certain structures and coupons.

Advantages of DTC-Eligible CDs

Negotiable and competitive market rates
One Master certificate per term
- One deposit per term
- Consolidate interest and principle payments through DTC
Structured liquidity/Funding needs
(No early withdrawal except in the event of death)
Flexible maturities and structures to meet your unique funding needs
- 3 months to 20 years
- Callable or bullet
- Floating or stepped rate
- Monthly, semi-annual or at maturity interest payment
Reduced administrative costs with management of interest payments, signature cards, incoming/outgoing wires, safekeeping, etc.
Collateral or pledging is not a requirement

How Can Your Bank Participate?

The FDIC requires a bank to be well capitalized in order to issue DTC eligible CDs. Other factors include the asset size and overall financial strength of your institution. We welcome any opportunity to discuss questions regarding this product. Amherst Securities Group is committed, walking your bank step by step through the process, to satisfying your bank's funding needs. Please contact the Institutional Funding Desk in our Boca Raton, FL office at 561-620-5855.