The new market rates Insight analysis shows banks reduced rates to fund the FDIC special assessment

A new analysis of market rates Insight (MRI, www.marketratesinsight.com), the leading research firm that tracks the rates on deposits, loans and fees to help financial institutions Price accuracy shows that banks reduce deposit rates on CDs and money market accounts after the FDIC special assessment. A month before June 30, when the FDIC special assessment entered into force, there was no change in aggregate national average rates on deposit products (0.00), but the average national APY declined 10 bps (0.10) on July 31.

"The timing and the number of changes in the national average deposits makes it very likely that underwriting agencies FDIC special assessment with a low cost of funds on deposit products," said Dr. Dan Geller, Executive Vice President for market rates insight. On May 22, 2009 FDIC Board of Directors adopted a final rule imposing a special assessment of 5 basis points on each insured depository institution's assets minus Tier 1 capital as of June 30, 2009, which is the date that the deposit rates began their slump. In addition the number of special assessment for any agency, which was set at a maximum of 10 basis points, corresponds well with the cumulative decline nationwide average from June 30, 2009.

For more than two decades of market rates Insight (MRI) helps subscribers Price accuracy, providing savings banks, credit unions and other financial institutions with the exact market for deposits, loans and fees. MRI uses deposit surveys, mortgage and consumer loan surveys, research, collection, scanned and Declaration, notification of new products and market share and money Fund intelligence reports to allow subscribers to a profitable response to new trends.

Market rates Insight is located in San Anselmo, California. For more information, see www.marketratesinsight.com.

Contact:

Dr. Dan Geller
Market Insight rates
415-448-8813
Dan.Geller@MarketRatesInsight.com

Tom Wolfe
Market Insight rates
(415) 259-5638
Tom.Woolf@marketratesinsight.com

View the original article here

Market rates Insight research links low deposit interest rates low the FDIC insurance fund balance

A new analysis of market rates Insight (MRI, www.marketratesinsight.com), the leading research firm that tracks rates for deposits, loans and fees to financial institutions, found that the level of FDIC deposit insurance fund (DIF) balance is substantial and significant impact on average interest rates for bank deposit products.  When the DIF balance was higher average APY was higher and deposit rates fell along with balance in DIF.

In the first quarter of 2007, when the balance of the insurance fund, the FDIC had about $ 50 billion, the national average interest rate for CDs and money market funds was 4.25 basis points.  Today the FDIC insurance fund balance is about $ 10 billion, and the national average interest rate for CDs and money market is 1.77 bps. "It is clear that the FDIC insurance fund balance influences the interest rates of deposits," said Dr. Dan Geller, Executive Vice President at market rates Insight, "the fact that we don't know how prepaid replenishment of the Fund now being proposed will affect interest rates on deposits."

Recent research examines the linear relationship (regression) between DIF quarterly balance sheets and interest rates for CDs and mm during the past five years (2004 Q4 Q2 2009).  The raw data for FDIC DIF residue was obtained from the FDIC's quarterly reports and raw data for national average APY for deposit products was derived from market rates insight database.  he full analysis can be viewed on the Web site of the market Insight rates at this site: http://www.marketratesinsight.com/docs/FDICCausingRateCha ...

Pro betting market Insight

For more than two decades of market rates Insight (MRI) helps subscribers Price accuracy, providing savings banks, credit unions and other financial institutions with the exact market for deposits, loans and fees. MRI uses deposit surveys, mortgage and consumer loan surveys, research, collection, scanned and Declaration, notification of new products and market share and money Fund intelligence reports to allow subscribers to a profitable response to new trends. MRI products include custom tools, market research, Web reporting, as well as a searchable online database, calibers, alerts, and dashboards that aggregate data key of the client to provide real-time views on how they stack up against competitors in the market.

Market rates Insight is located in San Anselmo, California. For more information, see www.marketratesinsight.com.

Contact:

Dr. Dan Geller
Market Insight rates
415-448-8813
Dan.Geller@MarketRatesInsight.com

Tom Wolfe
Market Insight rates
(415) 259-5638
Tom.Woolf@marketratesinsight.com

View the original article here

United States stocks, bonds, mutual funds see a net outflow of $ 34 billion in August, 2011, said strategic Insight

In an unusually volatile month, nervous that investors redeemed about $ 34 billion in cash from the United States stock and bond mutual funds in August 2011 (open and closed-end mutual funds, with the exception of ETFs and funds underlying variable annuities). August marked the third straight month of net resource outflows of long-term funds, after net outflows of 16 billion dollars in July, according to Strategic Insight, a provider of business intelligence in the industry worldwide.

Fund shareholders are clearly shaken by the drama last month. August began with a prolonged political battle over the Federal Government's debt ceiling, and a poor decision on standard & 5 August to lower the United States's long-term credit rating from AAA to AA +. S P 500 index & August ended down 5.4%, but experienced severe declines and rebounds along the way.

Mutual funds shares saw a surge of net resource outflows during the second week of August, but then the net outflow slowed to the pace more in line with recent months activity. "Our research over the last two decades shows that the foreclosure spikes after the stock market declines are usually limited in scope and did not last long," says Avi Nachmany, Director of research of the SI. "However, the continuing doubts about the United States economy and European sovereign debt problems reducing investors ' appetite for risk."

Equity mutual funds saw net outflows of 23 billion dollars in August, compared with a net outflow of resources from 24 billion dollars in July. United States equity funds saw a net outflow of 21.4 billion dollars in August, and international/global equity funds saw a net outflow of $ 1.4 billion.

Bond mutual funds saw net outflows of $ 11 billion, compared with a net inflow of 8 billion dollars in July. Taxable bond funds experienced a net outflow of $ 10 billion and Muni Bond funds experienced net outflows of 1 billion dollars. Leading position in net outflows were floating rate and high yield bond funds, both of which are sensitive to fears of a recession. The bright spots were corporate short-term and intermediate maturity of bond funds, which together brought in 6 billion in positive flow as some investors continued to look for alternatives to low-yielding cash.

Bond funds ' net flows seem to turn positive in late August, "said Mr. Nachmany. "Given the expectation of continued instability and the Federal Reserve to keep interest rates extremely low, demand for bond funds should rebound selection."

Money market funds saw a net inflow of 69 billion dollars in August, benefited from a flight to safety. It was a reversal from July, when money was a net outflow of $ 113 billion. In the first eight months of the year 2011 funds suffered a net outflow of total 183 billion dollars.

ETFs: Separately, Strategic Insight said that funds (ETFs), Exchange-Traded US in August, survived a nearly $ 1 billion in net inflows. Leading in net flows were a great mix of ETFs (about $ 5 billion in inflows), leveraged ETFs ($ 3 billion) and bond ETFs ultra-short time $ 2 billion); Diversified markets ETFs saw the biggest net outflows (nearly $ 2 billion).

Through the first eight months of the year 2011 with ETFs (ETNs) saw a net inflow of $ 89 billion, pace that can still produce for the fifth consecutive year, 100 billion dollars or more inflows into ETFs. At the end of August 2011 US ETF assets stood at 1.06 trillion dollars.

Strategic Insight, an asset international company, is a leading research firm for the mutual fund and wealth management, providing customers with in-depth studies, consultation and electronic support systems solutions.

View the original article here