New Issues: Agency/GSE the week of 02/18/2008

This week's New Issue Agency / GSE offerings:

Name Coupon Maturity Rating Call Protected Price

FHLB 2.750% 02/25/2009 Aaa/AAA* No** 100.00
FHLB 3.875% 03/05/2012 Aaa/AAA* No** 100.00
FHLB 4.125% 02/20/2013 Aaa/AAA* No** 100.00
FHLB 5.15% 03/05/2018 Aaa/AAA* No** 100.00
FHLB 5.20% 02/21/2018 Aaa/AAA* No** 100.00
FHLB 5.50% 03/10/2021 Aaa/AAA* No** 100.00
FHLB 5.65% 03/03/2023 Aaa/AAA* No** 100.00
FNMA 6.00% 03/06/2023 Aaa/AAA* No** 100.00
FHLB 6.00% 03/13/2028 Aaa/AAA* No** 100.00

• * Moodys/S&P Ratings
• ** Call Protected "Yes" means the bond is not callable. Call Protected "No" means the bond is callable.
• FHLB = Federal Home Loan Bank

Any fixed income security sold prior to maturity may be subject to a substantial gain or loss.


==> Highest Yield CDs with FDIC <==

Flagstar Bank To Suspend Dividend to Preserve Capital

Flagstar Bancorp, Inc. (NYSE: FBC) announced it will suspend payment of its quarterly dividend to shareholders for the first quarter 2008. This news explains why Flagstar Bank has been paying such a high rate for new CD accounts, they are trying to attract capital.

TROY, Mich., Feb. 19 /PRNewswire-FirstCall/ -- The Board of Directors of Flagstar Bancorp, Inc. (NYSE: FBC) announced that it will suspend payment of a dividend to shareholders for the first quarter 2008.

"Although we are seeing strong loan production, increasing gain on sale margins and improved net interest margins, the Board believes that it is prudent to preserve capital by suspending the dividend until the capital markets normalize and residential real estate shows signs of improvement," said Mark Hammond, Chief Executive Officer and Vice Chairman. Mr. Hammond added that "the Board will reassess the dividend in the second quarter based upon first quarter results and the state of the capital and residential real estate markets."

Flagstar Bancorp, with $15.8 billion in total assets, is the largest publicly held savings bank headquartered in the Midwest. At December 31, 2007, Flagstar operated 164 banking centers in Michigan, Indiana and Georgia and 143 home loan centers in 27 states. Flagstar Bank originates loans nationwide and is one of the leading originators of conforming single-family residential mortgage loans.

SOURCE Flagstar Bancorp, Inc.

See Flagstar Bank CD Rates

Libor and Call Interest Rates

LIBOR and other interest rate indexes as of 2/13/2008

	This week	Month ago	Year ago
Bond Buyer's 20 bond index	4.33	4.21	4.21
FNMA 30 yr Mtg Com del 60 days	5.64	5.53	6.22
1 Month LIBOR Rate	3.13	4.02	5.32
3 Month LIBOR Rate	3.07	4.00	5.36
6 Month LIBOR Rate	2.96	3.83	5.40
Call Money	4.75	6.00	7.00
1 Year LIBOR Rate	2.78	3.72	5.40

Call Money Rates are the interest rate charged by banks to brokers for money used to finance margin loans, usually to stock market investors.

LIBOR stands for London Interbank Offered Rate. It is the interest banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets, especially for mortgage lenders. Libor rates can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate.

==> Highest Yield CDs with FDIC <==

New Issues: Agency/GSE the week of 02/11/2008

This week's New Issue Agency / GSE offerings:

Name Coupon Maturity Rating Call Protected Price

FHLMC 3.25% 02/19/2010 Aaa/AAA* No** 100.00
FHLB 3.875% 03/05/2012 Aaa/AAA* No** 100.00
FHLB 4.125% 02/20/2013 Aaa/AAA* No** 100.00
FFCB 4.625% 08/22/2014 Aaa/AAA* No** 100.00
FHLB 5.20% 02/21/2018 Aaa/AAA* No** 100.00
FHLB 5.50% 03/10/2021 Aaa/AAA* No** 100.00
FHLB 5.25% 02/22/2023 Aaa/AAA* No** 100.00
FHLB 5.65% 03/03/2023 Aaa/AAA No** 100.00

*Moodys/S&P Ratings

** * Call Protected "Yes" means the bond is not callable. Call Protected "No" means the bond is callable.

Any fixed income security sold prior to maturity may be subject to a substantial gain or loss.

Survey of Highest Rate CDs, iBonds, TIPS and US Treasuries

From the Highest CD Rates Survey at forbestadvice.com, the best CD rate is 5.00% at Pentagon Federal Credit Union for a 7-year CD.

Below are some more rates and terms for the highest yield CDs

• 6 Months 4.75% at Countrywide Bank
• 1-year 4.00% at Excel National Bank
• 2 years 3.86% at Corus Bank & 3.85% @ Intervest National Bank
• 3 years 4.00% at Eastern Savings & 3.97% @ Ascencia
• 5 years 4.25% at Eastern Savings & 4.00% @ Capital One Bank
• 7 years 5.00% at Pentagon Federal Credit Union
• 10 years 4.16% at Capital One Bank

Today's US Treasury (T-Bond) Rates are:

• 3-month treasury bill currently pays 2.31%
• 6-month treasury bill currently pays 2.13%
• 2-yr treasury note pays 1.96%
• 5-yr treasury note pays 2.73%
• 10-year treasury bond pays 3.68%
• 30-year treasury bond pays 4.46%.

Compare that to my December 9th Survey that said:

• The 3-month treasury bill currently pays 3.07%, the 5-yr treasury note pays 3.50%, the 10-year treasury bond pays 4.11% and the 30-year T-Bond pays 4.57%.

I-Bonds (iBonds) currently pay 4.28% (I-Bond Details)

TIPS or Treasury Inflation Protected Securities currently pay

• 5-year TIPS 0.52%
• 10-year TIPS 1.37%
• 20-year TIPS 1.80%
• 30-year TIPS 1.75%

(TIPS pay that yield plus the principal is adjusted according to the CPI inflation )

More terms and rates at Best CD Rates.

Send qustions and comments to BestCDRateBlogFeedback

Warren Buffett Offers to Insure Muni Bonds

How nice of Warren Buffett to offer to take the cream of the crop and leave the troubled bond insurers with the toxic paper.

Just minutes ago Warren Buffett told CNBC of his plan to help the troubled bond insurance situation.

In the live telephone call to Squawk Box, Buffett offered to reinsure $800 billion in municipal bonds now insured by Ambac, MBIA and FGIC, effectively giving them a AAA credit rating. Those insurers are in danger of losing their AAA credit ratings due to problems with subprime mortgages and other loans.

Buffett tesaid he sent that offer to the bond insurers last week, and that he's giving them 30 days to find a better deal.

Buffett says one bond insurer turned him down, and he hasn't yet heard from the other two. No surprise there. Buffett did not say which company turned him down and he said he didn't think regulators could do much to force the bond insurers to accept his offer, unless they took over the companies themselves.

Buffett said the offer designed to make Berkshire Hathaway money, not to just do a good deed. I doubt a "good deed" has anything to do with it as Warren Buffett is famous for buying low when people are in distress.

Current prices:

Berkshire Hathaway (NYSE: BRK.A) $139,950
Ambac (NYSE:ABK) $10.48
MBIA (NYSE:MBI) $$13.58