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What is a Yankee CD?

Johns Wu Posted in Budgeting by Johns Wu
July 19, 2008 01:30 AM - 1 Comments

A certificate of deposit that is issued in a U.S. market by a branch of a foreign bank. Most Yankee CDs come from New York. Yankee CDs are negotiable with a minimum face value of $100,000. As a negotiable certificate of deposit, a Yankee CDS is guaranteed by the bank and can be sold in derivative markets. They are usually bought by large investors as a low-risk, low-interest security. Yankee CDs usually cannot be cashed in before their maturity.

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  1. Fernanda Pr said:
    on August 25th at 12:52 pm

    Is it possible that retail investors buy such instrument?

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