Tag Archives: senior notes
Zions Bancorporation Announces Equity Distribution Agreement and Commencement of Senior Notes Offering
While benefits of FDIC insurance can be debated, especially in this economic climate, insurance on certificates of deposit (CD) and bank accounts provides needed relief to the individual investor. Created in 1933 in response to the bank losses suffered during the Great Depression, FDIC insurance guarantees individuals’ bank deposits, currently up to $250,000 for each deposit in a single bank. Today, an individual can use the insurance to buy a CD knowing that their money is protected up to $250,000 until December 2013.
In addition to bank deposits, FDIC insurance carries over to some of the more conservative investment options as well. Read More
On April 28, Zions Direct closed its first municipal bond offering on the auctions platform. At its close, participants had bid on nearly nine times the offered amount on the Manatee County, Florida bond with the highest bid asking for a premium price of more than 1½ % above the coupon. Because of the benefits of the modified Dutch auction model, all winning bids got a better price than the coupon amount as each walked away a yield greater than 4.251% on these seven-year municipal bonds.
For those taking those possible tax advantages on this bond, if we assume a 35% tax bracket, it would take a yield of 6.53% on a taxable security in order to get a similar after-tax equivalent yield. Read More