Brokered CD

(redirected from Brokered Certificates of Deposit)

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 ?
1 million (face value) in long term brokered certificates of deposit on January 19, 2012 that presented a weighted average effective interest rate of 2.
Total deposits were relatively unchanged from a year earlier, but at March 31, 2012, the company had no brokered certificates of deposit compared with USD16.
today announced that Capmark Bank, its wholly owned subsidiary and a Utah-chartered industrial bank, transferred to another FDIC-insured bank approximately $827 million (in aggregate principal amount) of Capmark Bank's brokered certificates of deposit ("CDs"), which represent all of Capmark Bank's CDs maturing in October 2013 or later.
3m during the third quarter of 2011, primarily due to the bank's calling and redeeming USD3m of brokered certificates of deposit, an USD3.
Demand deposits were 16%, money market deposits and savings accounts were 17%, retail certificates of deposit were 39% and brokered certificates of deposit were 28% of total deposits at the end of the reporting period.
The Banks will use the cash proceeds from this transaction to pay down brokered certificates of deposit and short-term borrowings that are maturing prior to March 31, 2007 and invest any excess funds on a short-term basis until there are sufficient future maturities of brokered certificates of deposit and borrowings to utilize all remaining cash proceeds.
At June 30, 2006 total brokered certificates of deposit (CDs) were $223 million.
capital markets which may reduce interest margins, impact funding sources and affect demand for the Corporation's products and services and the value of the Corporation's assets, including the value of the interest rate swaps that economically hedge the interest rate risk mainly relating to brokered certificates of deposit and medium term notes as well as other derivative instruments used for protection from interest rate fluctuations; uncertainty about specific measures that could be adopted by the Puerto Rico government in response to its fiscal situation and the impact of those measures in several sectors of Puerto Rico's economy; uncertainty about the effectiveness and impact of the U.
capital markets which may reduce interest margins, impact funding sources and affect demand for the Corporation's products and services and the value of the Corporation's assets, including the value of the interest rate swaps that economically hedge the interest rate risk mainly relating to brokered certificates of deposit and medium-term notes as well as other derivative instruments used for protection from interest rate fluctuations; uncertainty about the effectiveness and impact of the U.
FirstBank expects to use a substantial amount of the proceeds of the loan repayments to repay outstanding brokered certificates of deposit that mature between now and the fourth quarter of 2006.
The change in the average balance of deposits was due to increases in retail certificates of deposit and brokered certificates of deposit, which were offset partially by decreases in the average balances of NOW and money market accounts.
The increase also includes brokered certificates of deposit used to repay advances from Federal Home Loan Bank.