Stifel unveils deal betting on CD business

Wealth giant agrees to acquire platforms to future-proof its certificates of deposit offerings.

Stifel is making a big play to beef up its institutional CD business.

The St. Louis, Missouri-based brokerage giant has entered into an agreement to acquire Finance 500 and CB Resource, which are established leaders in supporting financial institutions, particularly in the certificates of deposit business and tech-enabled risk management.

While the terms of the acquisition were not made public, the strategic move is aimed at expanding Stifel’s capabilities within its institutional platform.

“The addition of Finance 500 and CBR provides Stifel a technology-driven platform that will ensure our existing brokered CD funding business, our institutional CD investment offerings, and our community bank balance sheet risk management practice, are scalable and sustainable for the future,” Brant McDuffie, global co-head of Stifel Fixed Income Capital Markets, said in a statement.

Finance 500 Inc. and CB Resource Inc., which operate in Irvine, California, under common ownership, have been recognized for their role in assisting more than1,200 depository institutions and facilitating the raising of more than $200 billion to meet both immediate and future funding requirements.

CB Resource is particularly noted for its advanced technology platform, which supports enterprise risk management, strategic planning, and performance analytics for community banks across the US.

“Finance 500 and CBR, with our 40 years of experience, joined forces to deliver industry-leading CD funding, trading, ERM, planning, and performance-based analytics on a scalable platform,” said Jeff Rigsby, who heads both companies as chairman and CEO. “Our clients will benefit from Stifel’s market presence, financial strength, and access to the firm’s comprehensive suite of products and services.”

The news from Stifel comes shortly after Raymond James strengthened its fixed-income issuance capabilities by snapping up 10 former Citi execs for its municipal bond business.