What's Working

Great Opportunity to Earn Very Wide Wholesale Leverage Spread

Banks have a great opportunity to lock-in very low long-term fixed-rate wholesale funding using a combination of a rolling 90-day FHLB advance and an interest rate swap. We are seeing a growing number of institutions use this approach to fund long-term bond investments and earn spreads as wide as 200 basis points to offset the increasing pressure on earnings.

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