For me it was just al alternative to leaving it in the money market getting 4.9-5.1% so even if I got called out I did slightly better. I didn't really overthink it

Evidence that they white knuckling the global economy.

They overconfident. They think they magicians.

They'll do anything to save off going into a death wobble.

We might already be there now. It's clear that numbers released to the public are fudged. Nobody really knows what we looking at.

Stat Monitor Repairman said:

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Evidence that they white knuckling the global economy.

They overconfident. They think they magicians.

They'll do anything to save off going into a death wobble.

We might already be there now. It's clear that numbers released to the public are fudged. Nobody really knows what we looking at.

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I would simply conclude that banks can raise deposits at lower rates than they're paying on their callable CDs, which would not indicate they're in a "death wobble."

But if the argument is that banks are releasing "fudged" financials, then we no longer share the same objective view of reality and debating what this means is pointless.

I'm working with a Houston based real estate firm that allows passive investing. They are paying a monthly dividend of 10-12% annualized depending on initial investment.

I bleed maroon said:

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Proposition Joe said:

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You can get 5.4%+ on a HYSA, which is better than a callable CD.

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Yep. I'm trying to think of situations where a callable CD will be better at the same rate - FDIC protection? don't think so. Bankruptcy Priority? don't think so. Frictional/operational costs for the bank or enacting the call may make them slightly more reticent to move? Maybe, ever so slightly. Financial statement desireability for individuals or corporations? Doubt it, but there may be situations where CDs are viewed more favorably for some loan applications or other due diligence purposes. Bankers, any insight?

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The fact that the CD's are only callable at a certain date. For a lot of 12mo callable CD's, the rate is good for the first 6 months and then callable every month beyond that up to maturity. So that rate is guaranteed for 6 months. Your HYSA has no rate guarantees. It might pay 5.40% now but could (and likely will) drop significantly sometime this fall.

These should be treated as 6mo CD's, then anything you can get beyond that is just a cherry on top.

Baby Billy said:

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I bleed maroon said:

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Proposition Joe said:

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You can get 5.4%+ on a HYSA, which is better than a callable CD.

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Yep. I'm trying to think of situations where a callable CD will be better at the same rate - FDIC protection? don't think so. Bankruptcy Priority? don't think so. Frictional/operational costs for the bank or enacting the call may make them slightly more reticent to move? Maybe, ever so slightly. Financial statement desireability for individuals or corporations? Doubt it, but there may be situations where CDs are viewed more favorably for some loan applications or other due diligence purposes. Bankers, any insight?

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The fact that the CD's are only callable at a certain date. For a lot of 12mo callable CD's, the rate is good for the first 6 months and then callable every month beyond that up to maturity. So that rate is guaranteed for 6 months. Your HYSA has no rate guarantees. It might pay 5.40% now but could (and likely will) drop significantly sometime this fall.

These should be treated as 6mo CD's, then anything you can get beyond that is just a cherry on top.

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DISAGREE!!! These should NOT be treated as 6 month CDs. These should be treated as callable per the initial CD agreement, which can be:

- Continuously callable -or-
- Predefined date callable -or-
- Callable after a certain time period (such as after 3,6,9 months)
- Or something else that the bank has cooked up

READ YOUR SPECIFIC CD LANGUAGE!

Did you not read the paragraph above where I gave the example of a 12mo CD that's callable after 6 months???

After all my recent CD calls the last one standing is 5.1% that doesn't mature till 3/2028... It will probably be called after the next rate cut

Don't buy callable cds or bonds.