11th District Cost of Funds Index - COFI

DEFINITION of '11th District Cost of Funds Index - COFI'

A monthly weighted average of the interest rates paid on checking and savings accounts offered by financial institutions operating in the states of Arizona, California and Nevada. Published on the last day of each month, the COFI represents the cost of funds for western American financial institutions.

BREAKING DOWN '11th District Cost of Funds Index - COFI'

The COFI is computed using several different factors, with interest paid on savings accounts comprising the largest weighting in the average. Because of this, the index tends to exhibit low volatility and follow market interest rate changes somewhat slowly; it is generally regarded as a two-month lagging indicator of market interest rates.

Because it is computed using data from three western states, the COFI is primarily used in the western U.S. while the Treasury Index is the measure of choice in the east.

RELATED TERMS
  1. Current Index Value

    The most recently published value of an underlying interest rate ...
  2. Cost Of Funds

    The interest rate paid by financial institutions for the funds ...
  3. Weighted Average Market Capitalization

    A stock market index weighted by the market capitalization of ...
  4. Interest Rate Index

    An index that is based on the interest rate of a financial instrument ...
  5. Equal Weight

    A type of weighting that gives the same weight, or importance, ...
  6. Bank Rate Monitor Index

    An index of money market interest rates paid on deposits at 1 ...
Related Articles
  1. Home & Auto

    Adjustable-Rate Mortgage Indexes: Know Your Benchmark

    Understanding these benchmarks can help you select the most competitive adjustable-rate loan.
  2. Economics

    What is the Cost of Funds?

    Cost of funds is the interest cost financial institutions pay to use the funds they deploy in their business.
  3. Investing News

    Western Asset Management: Investment Manager Highlight (LM)

    Learn more about Western Asset Management, a Legg Mason subsidiary and fixed-income specialist with more than $433 billion in assets under management (AUM).
  4. Savings

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  5. Mutual Funds & ETFs

    Top 5 Mutual Fund Holders of Western Digital Corp. (WDC, VTSMX)

    Learn about Western Digital Corporation and the top five mutual funds that hold the company's common shares in their investment portfolio.
  6. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  7. Stock Analysis

    Markets Unfazed by Western Digital's Guidance Cut

    Western Digital (NASDAQ: WDC) has reduced its net profit guidance for its current quarter by around one-third, yet investors are apparently taking it in stride. In the wake of the announcement, ...
  8. Mutual Funds & ETFs

    4 Best Legg Mason Fixed-Income Funds (LM)

    Discover the four best mutual funds administered and managed by Legg Mason and its subsidiaries that specialize in investing in fixed-income securities.
  9. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  10. Savings

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
RELATED FAQS
  1. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
  2. How is the value of the S&P 500 calculated?

    The S&P 500 is a U.S. market index that gives investors an idea of the overall movement in the U.S. equity market. The ... Read Answer >>
  3. A company I recently looked up showed institutional holdings of more than 100%. How ...

    It is obviously not technically possible for any shareholder or category of shareholder to hold more than 100% of a company's ... Read Answer >>
  4. What is the rate of return I can expect on a savings account?

    Find out what kind of return you can expect from the cash balance in your savings account and why interest rates have been ... Read Answer >>
  5. How much money should I have in a savings account?

    Read a brief outline of the purpose of savings accounts, emergency funds and how to determine how much money to store for ... Read Answer >>
  6. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center