Brokered CD

(redirected from Brokered CDs)

Brokered CD

A certificate of deposit issued by a bank or thrift institution bought by a brokerage firm in bulk for the purpose of reselling to brokerage customers. A broker CD features a higher interest rate, usually 1% higher, and are FDIC insured and do not usually have commissions.

Brokered CD

A certificate of deposit (CD) that one buys through a brokerage. A bank originates the CD, which a brokerage then buys and sells to its clients, usually in smaller pieces. A brokered CD pays a higher interest rate than most CDs to which a small investor has access, and may be traded. As with all CDs, they are insured by the FDIC.

brokered CD

A certificate of deposit of a commercial bank or savings and loan that is sold through an intermediary (usually a brokerage firm) rather than directly by the savings institution itself. Small investors can frequently obtain rates paid on very large certificates through brokered CDs, which are generally sold in $1,000 units.
References in periodicals archive ?
online deposit platform along with all deposits of GE Capital Bank, including online savings accounts, online CDs and brokered CDs.
Brokered CDs, capital transfer strategies, insurance annuities and wealth protection programs for members are just a few of these.
Brokered CDs and 403b accounts are two ways new money has come to Kern Schools, Seyfert noted, adding the CU's investment program's success has hinged on offering products and services that best suits the cooperative's unique member base.
CDs are an important part of capital preservation strategies, and as our success with CDARS placements and brokered CDs indicates, we bring strong levels of support to CDs as an asset class," said Gary Strumeyer, president of BNY Mellon Capital Markets.
Many of these small banks also engaged in brokered CDs, which banking agencies maintained have proved their undoing, figuring also in other 2009 failures.
Since the first half of 2008 the Corporation has been replacing swapped-to-floating brokered certificates of deposit ("CDs") that matured or were called (due to lower short-term rates) with brokered CDs that were not hedged with interest rate swaps; in this way, the Corporation locked-in current lower interest rates for longer periods.
5 billion of brokered CDs and approximately $800 million of retail and institutional CDs, after accounting for anticipated maturities.
Includes Agency bonds, Corporate bonds, Municipal bonds, Brokered CDs, Pass-thrus, CMOs, and Asset Backed Securities.
The decision to issue long-term callable brokered CDs in prior years allowed us to exercise our call option and replace this funding with lower cost funding in the current environment.
The decrease is mainly attributable to the Corporation's decision during the second half of 2006 to pay down maturing short-term brokered CDs with available funds received from Doral's repayment of $2.
5 million of the net proceeds from the offering of the notes to repay borrowings under its existing senior debt facility, and a portion of the net proceeds for working capital and other general corporate purposes, which may include replacing brokered CDs at its subsidiary banks upon maturity.