Trust Preferred Securities: Are they always your optimal source of capital?

by Philip K. Smith

The use of trust preferred securities as an alternative funding vehicle continues to be a priority for many institutions. The use of that structure, which provides a capital-raising tool with both debt and equity elements, is certainly beneficial in many situations. However, far too often, community banks in particular may be tempted to simply “jump on the bandwagon” without considering other alternatives that might be more appropriate for their particular situations. More >





Timely Wholesale Funding Strategies 4: Using Adjustable-Rate Funding to Hedge Asset Sensitivity and Address Basis Risk

The Seattle Bank’s adjustable-rate funding products offer several key benefits: protection against increasing asset sensitivity; lower borrowing costs if interest rates decline; and the ability to use different indices to mitigate basis mismatch. No wonder Seattle Bank members are using these products to address more and more of their funding needs. More >