How To Use “Specials” And Odd-Month CDs in Deposit Structuring
It seems like something is getting lost in the tribal knowledge of deposit gathering. Certificate of deposit (CD) “specials” and the odd-month CD offering are a good example of this. As the legacy knowledge of deposit gathering is passed down from generation to generation of banker, some of the finer points of liability structuring are getting bastardized with some knowledge just plain forgotten about. In this article, we highlight how many banks are misusing CDs at the detriment of their balance sheet plus offer some recommendations.