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Formerly known as the World Savings COSI and the Wachovia COSI, the Wells Fargo Cost of Savings Index (COSI) is an ARM index, a benchmark interest rate that makes the interest rate of the adjustable-rate mortgage floats up or down.
Here are some popular ARM Indices: National Mortgage Contract Rate (NMCR), Auction Averages of Treasury Bills (T-Bill), Constant Maturity of the Treasury (CMT), Certificates of Deposit Index (CODI), Federal Cost of Funds, London Interbank Offered Rate (LIBOR), and Prime Lending Rate.
The Wells Fargo Cost of Savings Index is based on the interest rates paid, on the last day of each month, by Wells Fargo's banks on certificates of deposits that are held by individual depositors.
The COSI is reflecting the rate Wells Fargo is paying to individuals for their CD's; it is specific to Wells Fargo banking group and is calculated by taking the weighted average of the interest rates on the relevant deposits.
The COSI data usually lags one month and can be downloaded using the current object. It is available since June 2007 and it is associated with "^COSI" ticker symbol.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.