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Free to Members, LehmanLive^® Offers Key Financial Information

Sir Francis Bacon famously wrote that “Knowledge is power,” and in few industries is this truism more evident than financial services. For bankers responsible for making funding decisions on behalf of their institution, having access to financial data, news and information in a timely manner is crucial.

Although an enormous amount of financial information can be accessed publicly via the Internet, it can be time consuming to sort through the volumes of available Web sites to find specific data. Financial information services such as Bloomberg^® and Reuters^® are available on a fee-basis, though the monthly charge that can total as much as $1,500 per display terminal for some of these services can be a significant budget item for many community banks.

Fortunately, there’s LehmanLive^®. An online tool provided by Wall Street brokerage firm Lehman Brothers, LehmanLive is available to FHLBank Pittsburgh members on a complimentary basis through the Bank4Banks^® Web site. LehmanLive users can access streaming data on key interest rates and market indices; view current economic data, news and forecasts; and read proprietary research reports.

LehmanLive Includes a Cache of Financial Data
The “Financial Institutions Homepage,” the heart of LehmanLive, is designed to present, in a convenient framework, data for many of the key markets of interest to funding professionals. More specifically, the “Key Rates” section, located on the far right-hand side of the homepage, summarizes the current Fed Funds Target, 1-year Constant Maturity Treasury (CMT) and Prime rates, plus the most recent settings for 1-month, 3-month, 6-month, and 12-month LIBOR.

Having a convenient summary of the current fixings for these important funding rates can help bankers develop situational awareness about how their internal cost of funds compares with wholesale funding alternatives on a daily basis. (Similarly, the homepage’s presentation of current values for the Dow Jones Industrial Average, S&P 500, and NASDAQ Composite indexes can help users monitor how stocks are performing throughout the day.) Clicking on any of the current Key Rate levels also brings up individual graphs of historical data, which can be used to identify trends or determine a value on a specific date in the past.

In-depth Information on U.S. Treasury, MBS Featured
Displayed prominently on the left-hand section of the homepage are live prices and yields for the standard term structure (2-year, 5-year, 10-year, and 30-year maturities) of both U.S. Treasury bonds and interest rate swaps. During periods of relatively high market volatility like the present, having the ability to actively monitor the yields of fixed income securities throughout the trading day can improve execution and help reduce the risk of buying late during a rally or liquidating toward the end of a sell-off.

Another valuable feature on the homepage related to U.S. Treasuries and interest rate swaps is the graph of the live, par fitted Treasury- and 3-Month LIBOR swap curves. The graphs of the two overlaid curves are interactive and plotted using a complete set of interpolated yields and maturities ranging from overnight to 30 years. Moving the computer cursor to any point along the curves provides discrete values for all points (broken down into tenths of a year) along the entire term structure. (Another insightful graph showing live intra-day changes for both curves also appears on that page.) Live data on interest rate swaps is especially relevant to banks that are active borrowers of FHLBank Pittsburgh advances, since pricing of fixed-rate bullet and amortizing advances are highly-correlated with the 3-month LIBOR swap curve.

Along with data on Treasuries and swaps, the homepage features live pricing and yields on another asset class of particular interest to financial institutions: mortgage backed securities (MBS). Current yields on Agency MBS with maturities of 2 years, 5 years, 10 years and 30 years are available via a drop-down box that offers the choice of FNMA, FHLMC or FHLB issues, as well as spread comparisons relative to the yield on comparable Treasuries and interest rate swaps. Pricing and yields are also available on a mix of popularly-traded Agency Pass-Throughs for a range of coupons. So, if a bank is actively involved in the MBS market, or simply wants to monitor the current state of mortgage offerings, the LehmanLive homepage offers ample information on fixed-income securities tied to residential housing.

Interpretive Materials Provide Financial Edge
While timely access to relevant financial data is an important component for making informed funding decisions, insight derived from well-prepared interpretive materials can be particularly helpful for financial institutions looking for strategies to enhance their overall performance. LehmanLive offers a wealth of economic, industry and product research prepared by Lehman Brothers’ highly regarded staff of experienced research professionals. (Lehman’s U.S. Fixed Income Research Team has been ranked #1 in the annual Institutional Investor “All-America Fixed-Income Research Team” survey for the past eight years.)

LehmanLive’s “U.S. Daily Economic Comment” report offers commentary on significant economic events that occurred during the previous day, as well as a preview of potential developments. The hour-by-hour schedule of the upcoming day’s significant economic data releases contained in this report is a great resource for banks wanting to avoid potential market swings when planning significant funding decisions. Published on Mondays, the “U.S. Weekly Economic Monitor” offers lengthier analysis that is more in-depth, focusing on global and domestic macroeconomic developments that could impact the financial markets.

In terms of industry information, LehmanLive’s daily “Bank Brief” report presents summaries of timely news stories on both the financial services industry and individual financial companies. The stories are culled from a variety of sources including company press releases, stock analyst reports, regulatory announcements, SEC filings, news organizations and the financial press. For readers interested in a more detailed understanding of a specific entry, each summary contains a hyperlink to the original source material. A daily read-through of the information contained in a report such as the Bank Brief is an efficient way for bankers to stay up-to-date on the industry. LehmanLive also features product research on topics that are relevant to many financial institutions, such as the “Interest Rate Strategy Daily,” the “Daily Mortgage Commentary” and “MBS & ABS Outlook” reports.

In an industry as competitive and market-driven as financial services, having access to quality information that’s timely, relevant and easy to use is critical for making the types of decisions that lead to high performance. LehmanLive’s Financial Institutions Homepage can be a cost-effective resource for members looking to gain the power that can come from such knowledge.

DISCLAIMER
FHLBank has no responsibility for any external Web site, and FHLBank's privacy policy does not apply to any external site. Also, FHLBank neither endorses the information, content, presentation or accuracy, nor makes any warranty, expressed or implied, regarding any external site.

Bank4Banks^® is a registered trademark of the Federal Home Loan Bank of Pittsburgh.

Bloomberg^® is a registered trademark of Bloomberg, L.P., all rights reserved.

LehmanLive^® is a registered trademark of Lehman Brothers Holdings, Inc.

Reuters^® is a registered trademark of Thomson Reuters PLC, all rights reserved.