PUBLIC FINANCE June 8, 2020 - Raymond James Financial · RATES: SIFMA,LIBOR and Treasury Bills. June 8, 2020. Bank Ratings Monitor. Tom Galvin. 901.579.4226. [email protected].

RATES: SIFMA, LIBOR and Treasury Bills

June 8, 2020

Bank Ratings Monitor

Tom [email protected]

Michael [email protected]

PUBLIC FINANCE

This week Last week Last month Last YearWeekly VRDBs 0.11% 0.14% 0.19% 1.40%Taxable Weekly VRD 0.35% 0.40% 0.60% 2.42%2021 MMD-Early 0.14% 0.09% 0.75% 1.34%2021 MMD-Mid 0.16% 0.11% 0.77% 1.34%2021 MMD-Late 0.16% 0.11% 0.77% 1.34%T/E MMF assets $134.48 $134.82 $136.04 $136.13*Source: Raymond James, MMD, iMoneyNet Report

Tax-Exempt Short-Term Variable Rate Market

This week Last week Last Month Last Year SIFMA Index 0.11% 0.14% 0.19% 1.40%1M LIBOR 0.18% 0.18% 0.25% 2.42%SIFMA/1M LIBOR 61% 78% 76% 58%SOFR 0.07% 0.06% 0.05% 2.40%6M T-Bill 0.18% 0.18% 0.15% 2.25%*Source: Thomson, Bloomberg

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6.00SIFMA vs 30-Day LIBOR

30-Day LIBOR

SIFMA

Moody's S&P FitchTrading Value

Domestic BankCurrent SIFMA

Bank of the West P-1/A3/Stable A-1/A/Stable F1/A/Stable Plus 2

Bank of America P-1/Aa2/Stable A-1/A+/Stable F1+/AA-/Stable Plus 1

Bank of New York P-1/Aa2/Stable A-1+/AA- /Stable F1+/AA/Stable Flat

CitiBank P-1/Aa3/Stable A-1/A+/Stable F1/A+/Stable Plus 1

Fannie MAE P-

1/AAA/Stable N.A.F1+/AAA/Stable Flat

FHLB P-1/AAA/Stable A-1+/AAA/Stable F1+/AAA/Stable Flat

Freddie MAC P-1/AAA/Stable N.A. F1+/AAA/Stable Flat

JP Morgan P-1/Aa2/Stable A-1/A+/Stable F1+/AA/Stable Plus 1

Northern Trust LOC P-1/A2/Stable A-1+/AA-/Stable F1+/AA-/Stable Flat

PNC Bank P-1/A2/Stable A-1/A/Stable F1/A+/Stable Flat

TD Bank P-1/A2/Stable A-1+/AA-/Stable F1+/AA-/Stable Flat

US Bank P-1/A1/Stable A-1+/AA-/Stable F1+/AA-/Stable Flat

Wells Fargo P-1/Aa2/Neg A-1/A+/Stable F1+/AA-/Stable Plus 1

Foreign Bank

Bank of Montreal P-1/Aa2/Stable A-1/A+/Stable F1+/AA-/Stable Plus 1

Landesbank P-1/A1/Stable A-1/A/Stable F+/A+/Stable Plus 2

Mizuho Bank P-1/A1 A-1/A F1/A- Plus 1Mitsubishi/Union Bank(Domestic) P-1/A2/Stable A-1/A/Pos F1/A/Stable Plus 1 Royal Bank of Canada P-1/Aa2/Stable A-1+/AA-/Stable F1+/AA/Stable Plus 1

Sumitomo P-1/A1/Stable A-1/A/Pos F1/A/Stable Flat

DATA FOR CHARTS

BenchmarksAssetsAssets

30-Day LIBORSIFMATax-ExemptTaxable

RateRate

1/7/150.170.041/7/15264,660,000,0001/7/152,467,000,000,000

12/31/140.170.0412/31/14260,290,000,00012/31/142,494,000,000,000

12/24/140.160.0412/24/14259,580,000,00012/24/142,482,000,000,000

12/17/140.160.0412/17/14256,850,000,00012/17/142,459,000,000,000

12/10/140.160.0412/10/14254,710,000,00012/10/142,461,000,000,000

12/3/140.150.0312/3/14252,650,000,00012/3/142,441,000,000,000

11/26/140.150.0411/26/14252,650,000,00011/26/142,433,000,000,000

11/19/140.150.0511/19/14252,800,000,00011/19/142,426,000,000,000

11/12/140.150.0511/12/14252,510,000,00011/12/142,412,000,000,000

11/5/140.150.0411/5/14251,650,000,00011/5/142,403,000,000,000

10/29/140.150.0510/29/14252,650,000,00010/29/142,401,000,000,000

10/22/140.150.0410/22/14255,570,000,00010/22/142,397,000,000,000

10/15/140.150.0410/15/14256,070,000,00010/15/142,382,000,000,000

10/8/140.150.0410/8/14256,800,000,00010/8/142,397,000,000,000

10/1/140.150.0310/1/14252,740,000,00010/1/142,382,000,000,000

9/24/140.150.049/24/14255,080,000,0009/24/142,372,000,000,000

9/17/140.150.049/17/14256,190,000,0009/17/142,348,000,000,000

9/10/140.1530.049/10/14257,590,000,0009/10/142,361,000,000,000

9/3/140.1560.049/3/14255,250,000,0009/3/142,349,000,000,000

8/27/140.150.058/27/14257,040,000,0008/27/142,369,000,000,000

8/20/140.150.058/20/14259,260,000,0008/20/142,353,000,000,000

8/13/140.150.058/13/14258,210,000,0008/13/142,342,000,000,000

8/6/140.1570.058/6/14258,520,000,0008/6/142,331,000,000,000

7/30/140.150.067/30/14255,840,000,0007/30/142,333,000,000,000

7/23/140.150.067/23/14256,750,000,0007/23/142,330,000,000,000

7/16/140.150.057/16/14256,820,000,0007/16/142,336,000,000,000

7/9/140.150.037/9/14258,750,000,0007/9/142,345,000,000,000

7/2/140.150.047/2/14252,530,000,0007/2/142,338,000,000,000

6/25/140.150.066/25/14255,600,000,0006/25/142,332,000,000,000

6/18/140.150.076/18/14256,260,000,0006/18/142,329,000,000,000

6/11/140.150.066/11/14257,460,000,0006/11/142,357,000,000,000

6/4/140.150.056/4/14256,410,000,0006/4/142,355,000,000,000

5/28/140.150.065/28/14257,100,000,0005/28/142,366,000,000,000

5/21/140.150.085/21/14258,640,000,0005/21/142,369,000,000,000

5/14/140.150.085/14/14257,730,000,0005/14/142,380,000,000,000

5/7/140.150.085/7/14258,910,000,0005/7/142,376,000,000,000

4/30/140.150.14/30/14257,620,000,0004/30/142,354,000,000,000

4/23/140.1520.124/23/14261,100,000,0004/23/142,343,000,000,000

4/16/140.150.114/16/14266,720,000,0004/16/142,335,000,000,000

4/9/140.150.074/9/14270,380,000,0004/9/142,371,000,000,000

4/2/140.150.064/2/14268,810,000,0004/2/142,370,000,000,000

3/26/140.150.063/26/14270,290,000,0003/26/142,397,000,000,000

3/19/140.150.063/19/14270,480,000,0003/19/142,401,000,000,000

3/12/140.150.053/12/14270,620,000,0003/12/142,422,000,000,000

3/5/140.150.043/5/14268,640,000,0003/5/142,422,000,000,000

2/26/140.150.032/26/14269,330,000,0002/26/142,424,000,000,000

2/19/140.150.042/19/14268,040,000,0002/19/142,415,000,000,000

2/12/140.150.032/12/14270,120,000,0002/12/142,456,000,000,000

2/5/140.160.032/5/14268,870,000,0002/5/142,446,000,000,000

1/29/140.1590.041/29/14269,290,000,0001/29/142,444,000,000,000

1/22/140.160.041/22/14271,580,000,0001/22/142,449,000,000,000

1/15/140.160.041/15/14272,240,000,0001/15/142,418,000,000,000

1/8/140.1610.031/8/14274,710,000,0001/8/142,427,000,000,000

1/1/140.1680.041/1/14269,850,000,0001/1/142,435,000,000,000

12/25/130.1670.0612/25/13269,240,000,00012/25/132,423,000,000,000

12/18/130.1670.0612/18/13267,690,000,00012/18/132,398,000,000,000

Sifma vs Libor

SIFMA vs 30-Day LIBOR

30-Day LIBORRate4201142004419974199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416400.170.170.160.160.160.150.150.150.150.150.150.150.150.150.150.150.150.1530.1560.150.150.150.1570.150.150.150.150.150.150.150.150.150.150.150.150.150.150.1520.150.150.150.150.150.150.150.150.150.150.160.1590.160.160.1610.16800000000000001SIFMARate4201142004419974199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416400.040.040.040.040.040.030.040.050.050.040.050.040.040.040.030.040.040.040.040.050.050.050.050.060.060.050.030.040.067.0000000000000007E-20.060.050.060.080.080.080.10.120.117.0000000000000007E-20.060.060.060.050.040.030.040.030.030.040.040.040.030.04

Tax-Exempt

Tax-Exempt Money Market Assets

Tax-Exempt 264,660,000,000 260,290,000,000 259,580,000,000 4199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416404163341626256850000000254710000000252650000000252650000000252800000000252510000000251650000000252650000000255570000000256070000000256800000000252740000000255080000000256190000000257590000000255250000000257040000000259260000000258210000000258520000000255840000000256750000000256820000000258750000000252530000000255600000000256260000000257460000000256410000000257100000000258640000000257730000000258910000000257620000000261100000000266720000000270380000000268810000000270290000000270480000000270620000000268640000000269330000000268040000000270120000000268870000000269290000000271580000000272240000000274710000000269850000000269240000000267690000000

Taxable

Taxable Money Market Assets

Taxable 2,467,000,000,000 2,494,000,000,000 2,482,000,000,000 419904198341976419694196241955419484194141934419274192041913419064189941892418854187841871418644185741850418434183641829418224181541808418014179441787417804177341766417594175241745417384173141724417174171041703416964168941682416754166841661416544164741640416334162624590000000002461000000000244100000000024330000000002426000000000241200000000024030000000002401000000000239700000000023820000000002397000000000238200000000023720000000002348000000000236100000000023490000000002369000000000235300000000023420000000002331000000000233300000000023300000000002336000000000234500000000023380000000002332000000000232900000000023570000000002355000000000236600000000023690000000002380000000000237600000000023540000000002343000000000233500000000023710000000002370000000000239700000000024010000000002422000000000242200000000024240000000002415000000000245600000000024460000000002444000000000244900000000024180000000002427000000000243500000000024230000000002398000000000

Rates SIFMA, LIBOR & TBills Cha

This weekLast weekLast Month 1 Year

SIFMA Index 0.030.030.040.03

1M LIBOR0.170.170.160.16

SIFMA/1M LIBOR0.18%0.18%0.17%0.19%

6M T-Bill0.070.120.100.08

1Yr T-Bill 0.230.250.180.12

*Source: Raymond James, Bloomberg, Thompsons, MMD

TE Short-Term VR Market Chart

This weekLast weekLast monthLast Year

Weekly VRDBs 0.11%0.14%0.19%1.40%

Taxable Weekly VRDBs0.35%0.40%0.60%2.42%

2021 MMD-Early0.14%0.09%0.75%1.34%

2021 MMD-Mid0.16%0.11%0.77%1.34%

2021 MMD-Late0.16%0.11%0.77%1.34%

T/E MMF assets$134.48$134.82$136.04$136.13

DATA FOR CHARTS

BenchmarksAssetsAssets

30-Day LIBORSIFMATax-ExemptTaxable

RateRate

1/7/150.170.041/7/15264,660,000,0001/7/152,467,000,000,000

12/31/140.170.0412/31/14260,290,000,00012/31/142,494,000,000,000

12/24/140.160.0412/24/14259,580,000,00012/24/142,482,000,000,000

12/17/140.160.0412/17/14256,850,000,00012/17/142,459,000,000,000

12/10/140.160.0412/10/14254,710,000,00012/10/142,461,000,000,000

12/3/140.150.0312/3/14252,650,000,00012/3/142,441,000,000,000

11/26/140.150.0411/26/14252,650,000,00011/26/142,433,000,000,000

11/19/140.150.0511/19/14252,800,000,00011/19/142,426,000,000,000

11/12/140.150.0511/12/14252,510,000,00011/12/142,412,000,000,000

11/5/140.150.0411/5/14251,650,000,00011/5/142,403,000,000,000

10/29/140.150.0510/29/14252,650,000,00010/29/142,401,000,000,000

10/22/140.150.0410/22/14255,570,000,00010/22/142,397,000,000,000

10/15/140.150.0410/15/14256,070,000,00010/15/142,382,000,000,000

10/8/140.150.0410/8/14256,800,000,00010/8/142,397,000,000,000

10/1/140.150.0310/1/14252,740,000,00010/1/142,382,000,000,000

9/24/140.150.049/24/14255,080,000,0009/24/142,372,000,000,000

9/17/140.150.049/17/14256,190,000,0009/17/142,348,000,000,000

9/10/140.1530.049/10/14257,590,000,0009/10/142,361,000,000,000

9/3/140.1560.049/3/14255,250,000,0009/3/142,349,000,000,000

8/27/140.150.058/27/14257,040,000,0008/27/142,369,000,000,000

8/20/140.150.058/20/14259,260,000,0008/20/142,353,000,000,000

8/13/140.150.058/13/14258,210,000,0008/13/142,342,000,000,000

8/6/140.1570.058/6/14258,520,000,0008/6/142,331,000,000,000

7/30/140.150.067/30/14255,840,000,0007/30/142,333,000,000,000

7/23/140.150.067/23/14256,750,000,0007/23/142,330,000,000,000

7/16/140.150.057/16/14256,820,000,0007/16/142,336,000,000,000

7/9/140.150.037/9/14258,750,000,0007/9/142,345,000,000,000

7/2/140.150.047/2/14252,530,000,0007/2/142,338,000,000,000

6/25/140.150.066/25/14255,600,000,0006/25/142,332,000,000,000

6/18/140.150.076/18/14256,260,000,0006/18/142,329,000,000,000

6/11/140.150.066/11/14257,460,000,0006/11/142,357,000,000,000

6/4/140.150.056/4/14256,410,000,0006/4/142,355,000,000,000

5/28/140.150.065/28/14257,100,000,0005/28/142,366,000,000,000

5/21/140.150.085/21/14258,640,000,0005/21/142,369,000,000,000

5/14/140.150.085/14/14257,730,000,0005/14/142,380,000,000,000

5/7/140.150.085/7/14258,910,000,0005/7/142,376,000,000,000

4/30/140.150.14/30/14257,620,000,0004/30/142,354,000,000,000

4/23/140.1520.124/23/14261,100,000,0004/23/142,343,000,000,000

4/16/140.150.114/16/14266,720,000,0004/16/142,335,000,000,000

4/9/140.150.074/9/14270,380,000,0004/9/142,371,000,000,000

4/2/140.150.064/2/14268,810,000,0004/2/142,370,000,000,000

3/26/140.150.063/26/14270,290,000,0003/26/142,397,000,000,000

3/19/140.150.063/19/14270,480,000,0003/19/142,401,000,000,000

3/12/140.150.053/12/14270,620,000,0003/12/142,422,000,000,000

3/5/140.150.043/5/14268,640,000,0003/5/142,422,000,000,000

2/26/140.150.032/26/14269,330,000,0002/26/142,424,000,000,000

2/19/140.150.042/19/14268,040,000,0002/19/142,415,000,000,000

2/12/140.150.032/12/14270,120,000,0002/12/142,456,000,000,000

2/5/140.160.032/5/14268,870,000,0002/5/142,446,000,000,000

1/29/140.1590.041/29/14269,290,000,0001/29/142,444,000,000,000

1/22/140.160.041/22/14271,580,000,0001/22/142,449,000,000,000

1/15/140.160.041/15/14272,240,000,0001/15/142,418,000,000,000

1/8/140.1610.031/8/14274,710,000,0001/8/142,427,000,000,000

1/1/140.1680.041/1/14269,850,000,0001/1/142,435,000,000,000

12/25/130.1670.0612/25/13269,240,000,00012/25/132,423,000,000,000

12/18/130.1670.0612/18/13267,690,000,00012/18/132,398,000,000,000

Sifma vs Libor

SIFMA vs 30-Day LIBOR

30-Day LIBORRate4201142004419974199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416400.170.170.160.160.160.150.150.150.150.150.150.150.150.150.150.150.150.1530.1560.150.150.150.1570.150.150.150.150.150.150.150.150.150.150.150.150.150.150.1520.150.150.150.150.150.150.150.150.150.150.160.1590.160.160.1610.16800000000000001SIFMARate4201142004419974199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416400.040.040.040.040.040.030.040.050.050.040.050.040.040.040.030.040.040.040.040.050.050.050.050.060.060.050.030.040.067.0000000000000007E-20.060.050.060.080.080.080.10.120.117.0000000000000007E-20.060.060.060.050.040.030.040.030.030.040.040.040.030.04

Tax-Exempt

Tax-Exempt Money Market Assets

Tax-Exempt 264,660,000,000 260,290,000,000 259,580,000,000 4199041983419764196941962419554194841941419344192741920419134190641899418924188541878418714186441857418504184341836418294182241815418084180141794417874178041773417664175941752417454173841731417244171741710417034169641689416824167541668416614165441647416404163341626256850000000254710000000252650000000252650000000252800000000252510000000251650000000252650000000255570000000256070000000256800000000252740000000255080000000256190000000257590000000255250000000257040000000259260000000258210000000258520000000255840000000256750000000256820000000258750000000252530000000255600000000256260000000257460000000256410000000257100000000258640000000257730000000258910000000257620000000261100000000266720000000270380000000268810000000270290000000270480000000270620000000268640000000269330000000268040000000270120000000268870000000269290000000271580000000272240000000274710000000269850000000269240000000267690000000

Taxable

Taxable Money Market Assets

Taxable 2,467,000,000,000 2,494,000,000,000 2,482,000,000,000 419904198341976419694196241955419484194141934419274192041913419064189941892418854187841871418644185741850418434183641829418224181541808418014179441787417804177341766417594175241745417384173141724417174171041703416964168941682416754166841661416544164741640416334162624590000000002461000000000244100000000024330000000002426000000000241200000000024030000000002401000000000239700000000023820000000002397000000000238200000000023720000000002348000000000236100000000023490000000002369000000000235300000000023420000000002331000000000233300000000023300000000002336000000000234500000000023380000000002332000000000232900000000023570000000002355000000000236600000000023690000000002380000000000237600000000023540000000002343000000000233500000000023710000000002370000000000239700000000024010000000002422000000000242200000000024240000000002415000000000245600000000024460000000002444000000000244900000000024180000000002427000000000243500000000024230000000002398000000000

Rates SIFMA, LIBOR & TBills Cha

This weekLast weekLast Month Last Year

SIFMA Index 0.11%0.14%0.19%1.40%

1M LIBOR0.18%0.18%0.25%2.42%

SIFMA/1M LIBOR61%78%76%58%

SOFR0.07%0.06%0.05%2.40%

6M T-Bill0.18%0.18%0.15%2.25%

1Yr T-Bill 0.17%0.17%0.16%2.04%

TE Short-Term VR Market Chart

This weekLast weekLast month1 year

Daily VRDBs0.010.030.020.02

Weekly VRDBs 0.020.030.040.05

2016 MMD-Early0.140.140.160.34

2016 MMD-Mid0.330.340.280.41

2016 MMD-Late 0.430.450.390.50

T/E MMF assets$264.66$260.29$254.71$274.41

Raymond James & Associates, Inc., member New York Stock Exchange/SIPC. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or the solicitation of an offer to sell or buy the securities herein mentioned. This firm and/or its affiliates and/or its shareholders and/or members of their families may have position in the securities mentioned and may make purchases and/or sales of these securities from time to time in the open market or otherwise. Opinions expressed are present opinions only and are subject to change without prior notice. Raymond James may also perform or seek to perform investment banking for entities referred herein.

Despite an $808.7 billion decline in assets the last three weeks, SIFMA has gradually fallen down from 0.16% to 0.14% to this week’s 0.11%. The zero-rate interest rate environment has taken hold on the tax-exempt money market funds. Municipal bond funds have seen strong inflows offsetting our losses but continual outflows in the money funds could put a damper on our party. The first week of June will report a strong inflow and seasonal factors should help us as we enter summer. Total assets in the tax-free funds stands at $134.48 billion today. The strong performance of the stock market has taken the steam out of the bond market. SIFMA to 1M LIBOR ratio is 61%. With the average yield on the tax-free funds at 0.06%, lower SIFMA rates are no longer a given.

Have a great week.

Tom and Michael

Type of Fund Values as of 1/1/20 Values as of 6/2/2020 Change % Change

Government Retail 726,234,900,000 921,262,900,000 195,028,000,000 26.85%Prime Retail 457,712,800,000 452,798,700,000 (4,914,100,000) -1.07%

Government Institutional 1,951,187,300,000 2,890,116,000,000 938,928,700,000 48.12%Prime Institutional 310,114,000,000 294,058,900,000 (16,055,100,000) -5.18%

3,445,249,000,000 4,558,236,500,000 1,112,987,500,000 32.30%

Tax-Free Retail 125,804,800,000 119,191,700,000 (6,613,100,000) -5.26%Tax-Free Institutional 11,314,100,000 15,285,100,000 3,971,000,000 35.10%

137,118,900,000 134,476,800,000 (2,642,100,000) -1.93%

Change in the Money Market Space 2020

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