FDIC-Insured Brokered Certificates of Deposit
Saxon Securities seeks to achieve superior risk-adjusted returns for clients pursuing a preservation of capital investment strategy. Our advantage includes:
- We invest solely in FDIC-insured brokered CDs that have the full faith and credit of the U.S. Government.
- FDIC-insured brokered CDs are Depository Trust Company ("DTC") eligible, negotiable instruments that can be sold on the secondary market should a client need immediate liquidity.
- FDIC-insured brokered CDs may provide significant yield enhancement as compared to alternatives.
- Capacity varies by term; for a portfolio of one to two-year maturities, we are able to place significant sizes per tax ID.
- FDIC-insured brokered CDs portfolios provide attractive, flexible terms that are purchased to meet client-defined maturity intervals.
- Saxon Securities does not charge penalties for early withdrawals or liquidation.
- All assets are held in client’s separately managed accounts; clients can use existing custodial relationships.
- Portfolio strategies are tailored to meet client objectives.
- Consolidated portfolio reporting and security reporting is provided.
Investment Approach
- Total Client investments are fully FDIC-insured; full coverage is obtained by spreading the investment among as many separate FDIC-insured institutions as necessary so that no institution certificate of deposit holding is more than the $250,000 (principal plus accrued interest) FDIC insurance limit.
- Investments are tailored using separately managed accounts for each client’s liquidity requirements, instrument and term preferences; taking into account client’s depository institution exclusions.
- CDs are sourced from a wide network of originators with the goal of providing the highest yield possible to our clients.
- Best prices are negotiated on behalf of our clients from each bank/originator.
- CDs (principal plus accrued interest) are tracked through our proprietary Deposit Management Platform; measuring exposure to each participating bank by tracking a unique FDIC certificate number.
- On-demand consolidated portfolio reporting with visibility of fundamentals (e.g., term structure, average yield-to-maturity, average maturity, and spread-to-treasuries) as well as detailed security holdings is provided.