Glossary of Terms

An understanding of the different indexes and rates helps you make better financial decisions. We ensure you get the best rate, but also like to keep our clients informed.


Definition of indexes, funds, and rates.

COFI (11th District Cost of Funds Index)

The monthly weighted average cost of deposits and borrowings for savings institutions in the Federal Home Loan Bank’s 11th District, as made available by the Federal Home Loan Bank of San Francisco.

MTA (12-Month Treasury Average)

The 12-month average of annual yields on actively traded United States Treasury Securities adjusted to a constant maturity of one year, as made available by the Federal Reserve and published in its Statistical Release, “Selected Interest Rates – G13.”

LIBOR (6-Month London Interbank Offered Rate)

The rate at which deposits of U.S. dollars are traded in London. It is used as a common international interest rate index.

CMT (1-Year Constant Maturity Treasury Index)

The average yield of all Treasury Securities having one year remaining until maturity. The index is calculated weekly. It’s made available by the Federal Reserve in the weekly publication “Statistical Release – H15” and can be found on various wire services.

Prime Rate

The base rate on corporate loans posted by the nation’s largest banks.