Short-Term Funding Strategies

posted on Wednesday, October 16, 2019 in Advances

greenlight to 2020 short term funding

As you assess your year-end funding needs, it may be prudent to consider using short-term advances with maturities that extend past year-end 2019 to help diversify your short-term funding.

FHLB Des Moines Advance Rates vs. Average Brokered CD Rates

Short-term advance rates, when adjusted for dividends, have trended very favorably to similar-duration brokered deposits over the past several months as depicted by the graph below.

FHLB Des Moines Advance vs. Brokered CD Rates

To learn more about how the FHLB Des Moines activity based cash dividend positively impacts the net cost of advances, download our dividend calculator.

DIVIDEND CALCULATOR

A strategy that incorporates diversifying short-term funding maturities over year-end can assist your institution in procuring the necessary funding to lock in rates and stabilize your balance sheet funding costs.

Contact your Relationship Manager to discuss the benefits of a short-term funding strategy. 


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