BanxQuote Indexes & Analytics

BanxQuote provides a family of widely followed indices and benchmarks that measure the rates and performance of banking, depository, mortgage, home equity and consumer loan markets. These indices are maintained according to strict, objective, consistent and systematic standards and procedures set for over two decades.

BanxQuote licenses its registered trademark and servicemark, proprietary indices, data, analytical tools, and financial applications to third parties. For information on licensing or advertising with BanxQuote Indexes^SM click here. The most popular BanxQuote indices are as follows:

• The BanxQuote Money Market Index^SM is defined by the Dow Jones Barron's Dictionary of Banking Terms as an "Index of rates paid by investors on negotiable certificates of deposit and high yield savings accounts, compiled weekly by BanxCorp. "
• The BanxQuote Issuing Banks Funding Matrix^SM for Depository Trust Co. (DTC) eligible book-entry CDs is a widely used indicator of the consensus pricing levels and the issuing banks' "all-in" cost of funds prevailing in the new issue and secondary broker-dealer or wholesale markets for retail deposits.
• The BanxQuote Jumbo-Conforming Mortgage Index^SM is typically used to analyze the historical spread between national average conforming and jumbo mortgage rates. It is the most prominently used independent performance benchmark and barometer of the U.S. mortgage markets, while at the same time it is used by GSEs, e.g., Freddie Mac, as a proxy for the interest rate savings passed through to conforming mortgage borrowers.

BanxQuote on Bloomberg Professional Terminals

Since 1994, BanxQuote current and historical proprietary data, indices, charts and analytical tools are available on over 250,000 Bloomberg Terminals worldwide under the screen name "BANX".

References & Case Studies:

• Goldman Sachs US Economic Research Group and Goldman Sachs Gao Hua - China
  use the BanxQuote Jumbo-Conforming Mortgage Index^SM available through Bloomberg terminals, as a benchmark for economic research and financial market analysis, thus facilitating the distribution of BanxQuote information to end users in BRICs (Brazil, Russia, India and China) economies, and worldwide.

Government & Economic Research
Banking & Mortgage Markets Performance Indicators

• The White House

President George W. Bush signed the 2008 Economic Report on February 11, 2008. It contains a BanxQuote chart (2-2) showing how the Spread between Jumbo and Conforming Mortgage Rates for 30-year Fixed Rate Mortgages (FRM) widened following the onset of credit market turmoil in August 2007.
• Council of Economic Advisers

On February 28, 2008, the Chairman of the Council of Economic Advisors, Ed Lazear, presented the 2008 Economic Report of the President at the National Economists Club in Washington, DC, shedding light on the key analysis and findings of one of the Administration's most important economic documents of the year. BanxQuote is credited as the source of a chart that illustrates the Spread Between Jumbo and Conforming Mortgage Rates (slide # 6).
• U.S. Department of the Treasury
  On May 2, 2008, a team of senior U.S. Treasury officials convened at the headquarters of JPMorgan Chase and elsewhere in Manhattan to conduct a series of high level Wall Street and mortgage banking industry presentations of "The Administration's Housing Strategy and Economic Update." A BanxQuote chart with the Spread Between Jumbo and 30 year Mortgage Rates (slide # 7) was shown to illustrate certain Financial Market Stresses.
• U.S. Senate
  Statement of Anthony B. Sanders before the Committee on Banking, Housing, and Urban Affairs, February 10, 2005. The BanxQuote Index is used to illustrate the spread over time between Jumbo and Conforming Mortgage Rates (Fig. 1), as 'the simplest measure of lowering mortgage rates by the GSEs.'
• U.S. House of Representatives
  Statements of former OMB director and FTC chairman, James C. Miller III, and Freddie Mac SVP, Mitchell Delk, before the Subcommitte on Capital Markets, Insurance and Government Sponsored Enterprises of the Committe on Financial Services, July 11, 2001. Both testimonies and a supplementary January 2001 Pierce-Miller study, use BanxQuote mortgage indices to prove the benefits of GSEs. The same BanxQuote charts are also on display on FreddieMac's website.
• Federal Reserve Bank of St. Louis
  BanxQuote is cited in a 1999 research report entitled "Monetary Policy Rules?", by William Poole, president of the Federal Reserve Bank.
• Federal Deposit Insurance Corporation (FDIC)
• Office of Thrift Supervision (OTS)

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Government Sponsored Enterprises (GSEs)
Mortgage Markets Benchmarking Solutions

• Freddie Mac, the Federal Home Loan Mortgage Corporation.
  Because of the role of Freddie Mac and Fannie Mae, mortgage rates in the conventional conforming market have historically been at least 1/4 of a percentage point below jumbo mortgage rates. The spread has widened since the onset of the 2007/2008 credit market turmoil. As shown on Freddie Mac's website, the BanxQuote mortgage indices are used to prove that "Freddie Mac provides stability to the mortgage market and it is still needed."
• Wharton Financial Institutions Center - Working Papers
  "Measuring the Benefits of Fannie Mae and Freddie Mac to Consumers", by Prof. Anthony B. Sanders of Ohio State University, July 2005. BanxQuote is used as a source for jumbo and conforming mortgage rates, and their differential over time (Fig. 1).

Pension Funds, Non-Profit & Religious Organizations
Banking & Mortgage Markets Benchmarking Solutions

• F.B. Heron Foundation
  The New York-based F.B. Heron Foundation was created in 1992 with the mission of helping people and communities to help themselves. The Foundation has established performance benchmarks for each asset class in its mission-related portfolio. The benchmark for deposits is the national average for two-year jumbo deposits BanxQuote Index. (Information retrieved from the Federal Reserve Bank of Dallas website).
• CitiStreet Investing Webcast at Michigan Judicial Institute
  CitiStreet, a State Street and Citigroup Company acquired on May 2, 2008 by ING, uses a BanxQuote Index as the benchmark for current returns of money markets and CDs (Slide # 3), at a summer 2007 webcast presentation for State of Michigan public servants retirement systems serving 581,000 people.
• Diocese of Monterey, California
  In 2007, the bishop of Monterey established a policy that all funds of the Monterey diocese deposited in its Cash Management and Deposit and Loan programs would earn a rate tied to the BanxQuote Money Market Rate for California Index.

Banking & Investments Benchmarking Solutions

• AAA (American Automobile Association) Money Markets & CDs

On January 1, 2008, AAA launched a High-Yield Savings Program in partnership with Discover Bank aimed at AAA's nearly 51 million members, using the BanxQuote Index as a performance benchmark to illustrate how "AAA Rates Consistently Exceed the National Average."
• COSTCO Capital One Money Market Accounts and CDs

Costco Warehouse, the largest membership warehouse club chain in the world, markets its Capital One Money Market Accounts and CDs to its 51.8 million members, using the BanxQuote Index as a performance benchmark.
• GE Interest Plus Notes issued by General Electric Capital Corp.

General Electric Capital Corporation is a global, diversified financial services company with assets of approximately $500 billion, operating in 47 countries around the world. GE Interest Plus uses the BanxQuote Indexes as a performance benchmark to market its Notes.
• Ford Interest Advantage Notes issued by Ford Motor Credit Company

Ford Motor Credit Company is an indirect, wholly owned subsidiary of Ford Motor Company. Since 1959, Ford Credit has financed more than 50 million vehicles. Ford Interest Advantage uses the BanxQuote Index as a benchmark to market its notes.
• UBS

UBS is the leading global wealth manager, a leading global investment banking and securities firm, one of the largest global asset managers, and the leading bank in Switzerland. UBS uses a real-time live datafeed on its website at UBS.com powered by BanxQuote, with dynamically updated side-by-side performance indices and benchmark tools used by its clients and account executives nationwide.
• Discover Bank, part of Discover Financial Services

Discover Financial Services (NYSE: DFS) is a leading credit card issuer and electronic payment services company with more than 50 million cardholders and one of the most recognized brands in U.S. financial services. Discover Bank uses the BanxQuote Index as a performance benchmark to illustrate how "Discover Bank rates consistently exceed the national average."
• Countrywide Bank

Countrywide Bank is part of the Countrywide Financial Corporation (NYSE: CFC), America's #1 home loan lender. It uses the BanxQuote Index as a performance benchmark in marketing campaigns.
• MetLife Bank

MetLife Bank is a subsidiary of MetLife, Inc., which has more than 70 million customers and is the largest life insurer in the United States. MetLife Bank uses the BanxQuote Index as a rate comparison benchmark.
• Capital One Direct Banking

Capital One is a global diversified financial services and Fortune 500 company with over 50 million customer accounts and over $80 billion in deposits. It markets several banking products using the BanxQuote Index as a performance benchmark.

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Notable Engagements & Projects

• The Limited, Inc. v. Commissioner of Internal Revenue.
  BanxQuote provided expert testimony, in addition to historical and fair market pricing analysis in connection with a complex $174.9 million litigation concerning The Limited, Inc. v. Commissioner of Internal Revenue. Limited Brands, f.k.a. The Limited (represented at the time by the law firm Mayer Brown & Platt), is one of the largest specialty retailers in the United States. The U.S. Internal Revenue Service disputed a 1993 transaction involving The Limited's subsidiary World Financial Network National Bank. The disputed transaction comprised a series of international wire transfers and the sale of $174.9 million in certificates of deposit to a Far East affiliate.





• Cognos 'PowerPlay' Analysis Tool in Partnership With BanxQuote.
  IBM Cognos PowerPlay, the world's best-selling OLAP software, lets users analyze large volumes of data with sub-second response times. In 1998 Cognos launched PowerPlay SE Leading U.S. Banks Edition in partnership with BanxQuote, allowing users to "play the spread" and explore key performance data and benchmarks by using this powerful multidimensional analysis tool.





• AMAX/Shearson Lehman $100 Million Auction-Rate Securities Hedge Through CDs.
  Amax Inc., a former New York Stock Exchange traded company engaged in aluminum, coal, molybdenum, gold mining and oil & gas businesses, which eventually became part of Freeport-McMoran Copper & Gold, launched a $100 million auction-rate securities offering underwritten by Shearson Lehman in 1986. The purpose was to generate a fixed income spread between the auction rates to be paid and the interest income of a hedged portfolio of CDs. AMAX and Shearson Lehman turned to BanxQuote for assistance in structuring and managing the $100 million high-yield CD portfolio.