cash management

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.