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BROKERED CERTIFICATE OF DEPOSIT RATES GENERALLY DECLINED IN LATEST PERIOD, SIA REPORTS

 NEW YORK, March 11 /PRNewswire/ -- Nationwide average interest rates for brokered certificates of deposit (BCDs) for weekly trades settled from Thursday, March 3 through Wednesday, March 10 generally declined from the like period a week earlier ended March 3, the Securities Industry Association said Thursday.
 The "Brokered Certificate of Deposit Rate Index" covers nine maturities ranging from three months to 10 years. Those maturities are most often purchased by small investors, SIA said.
 The dollar weighted averages for these BCD rates are based upon the actual rates of BCD issuance settled weekly by securities firms, with Depository Trust Co. (DTC) acting as custodian, as well as settlements as reported to SIA by brokers not facilitated through DTC. Other information transmitted to SIA are maturity dates, dollar amounts and method of rate calculation.
 The majority of BCDs are held by DTC as custodian.
 Methodology Summarized
 The index reflects SIA-calculated dollar weighted averages of BCDs of similar maturities settled in the preceding Thursday through Wednesday period.
 While rates in the index normally represent BCDs issued by a number of depository institutions, certain maturities at times, due to market conditions, may be represented by a single issuer.
 Not all rates are calculated on the same basis; some banks and savings associations use a 360 day cycle to determine rates, while others use a 365 day cycle. The average rates calculated by SIA are on a bond equivalent basis, representing the actual days in the year.
 DTC is a national clearinghouse for the settlement of securities transactions and provides securities custody services for its bank and broker-dealer users.
 SIA is the securities industry's trade association, representing the business interest of nearly 700 securities brokerage and investment banking firms in the United States and Canada. Collectively, they account for more than 90 percent of securities in North America.
 SIA reported the following rates for the nine maturities:
 SIA BROKERED CD RATE INDEX
 (Bond Equivalent Yield Rates)
 Week ended:
 Maturity 3/11 3/4 2/24 2/17
 3 month 3.03 3.02 3.04 3.03
 6 month 3.10 3.09 3.09 3.05
 1 year 3.23 3.27 3.34 3.35
 2 year 3.88 3.96 3.88 4.01
 3 year 4.27 4.33 4.43 4.44
 4 year 4.73 4.73 4.80 4.81
 5 year 4.93 5.05 5.24 5.32
 7 year 5.42 5.47 5.69 5.75
 10 year 5.81 5.98 6.07 6.15
 -0- 3/11/93
 /CONTACT: Art Samansky or Karen San Antonio both of SIA, 212-608-1500/


CO: Securities Industry Association ST: New York IN: FIN SU:

TS-LR -- NY054 -- 5149 03/11/93 14:01 EST
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Date:Mar 11, 1993
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