The Capital Market CD (CMCD) is the nation's first patented securitized CD process. The patented CMCD program provides community banks access to the capital markets and guarantees a monthly source of term funding that banks can count on without the need to buy stock or pledge collateral and with no annual fee.
The CMCD program allows community banks to strategically ladder in deposits to lock in margins and reduce interest rate risks. In addition banks can also invest in Capital Market CD notes that are AAA rated and provide effectively US government risk (collateral is FDIC insured) at a significant price premium.
Benefits Include:
Provides reliable source of liquidity
No need to pledge collateral
Avoid rate sensitive deposits
No early redemption provision
Provides a consistent, efficient and cost effective source of liquidity
