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New offering from Primary Financial: Five benefits for your credit union

We are pleased to announce some recent developments with the SimpliCD program that will enhance the investor experience and the scope of SimpliCD’s already robust product offering.

SimpliCD, a leader in credit union issuance, has been offering Depository Trust Company (DTC)-style CDs for the last seven years. Up until now, these negotiable CDs, which can be transferred or sold prior to maturity, have been somewhat limited to the more widely held names or what has been known as the “Money Center” or common issuers (names like Discover Bank, Goldman Sachs, and Ally Bank).

Primary Financial, the custodian for the SimpliCD program, has partnered with the broker-dealer network to expand these offerings beyond just the “money center” names and will now offer issues from several other institutions available in the marketplace. These are much less frequent issuers, and these issuers may have been only available to clients of the particular broker-dealer who underwrote the issue.

Through these new developments, Primary Financial and Corporate One are able to expand the scope of available daily offerings to SimpliCD investors by a substantial amount. Here are five ways this expansion benefits your credit union:

Benefit 1

You have a more robust list of names available when you are looking to invest and fill maturity ladders with rates that are in line with the current CD market.

Benefit 2

More rates are available for block quotes. Block quotes allow the investor to combine a list of offerings, take the weighted average rate, and book that as the rate. This consolidates the amount of line items in the portfolio for a specific rung on the ladder.

For example, ABC Credit Union has a spot in their ladder in February of 2020 for $1,500,000. Rather than book six or seven names individually with a range of rates, the investment officer decides to purchase a block of $1,500,000 with an average rate of 2.25%. ABC’s Corporate One Investment Representative and Primary Financial work together with ABC Credit Union to prevent any duplicates in the issuer names used in the block.

Benefit 3

No safekeeping account or direct broker-dealer account is required. Usually, negotiable or DTC issues require these kinds of accounts and come with some limitations, such as safekeeping fees, wires, and additional cash management requirements.

Benefit 4

You can consolidate purchases under one roof at Primary Financial.

Benefit 5

The expanded offerings will be available in real time through SimpliCD Online, which gives 24-hour access to your credit union’s SimpliCD account and offers online trading capabilities.

Getting started

Want to know more about SimpliCD’s new offerings and see what is available to your credit union? Please contact your Corporate One Investment Representative directly or reach out to us at 800/366-2677, or email Investments@corporateone.coop.