negotiable certificate of deposit

(redirected from Negotiable CD)

Negotiable Certificate of Deposit

A certificate of deposit of large value that can be bought and sold but not redeemed before maturity. See also: Jumbo CD, Callable CD.

negotiable certificate of deposit

A large denomination ($100,000 and larger) certificate of deposit that is issued in bearer form and that can be traded in the secondary market. Negotiable CDs appeal mainly to companies and institutional investors interested in low-risk investments with a high degree of liquidity. See also money market.
References in periodicals archive ?
As a key member of market pricing mechanism and member of the interbank CD working group, ICBC has been highly committed to interest rate reform by leveraging the strengths as a large bank to boost the structuring of market pricing benchmark, support research into large-amount negotiable CD products and explore the issuance and trading of interbank CDs in interbank market.
The firm also offers real time account management online and developed its own proprietary Web platform that allows customers the ability to invest in negotiable CDs online.
Eurodollars and Negotiable CDs constitute short-term borrowing by banks to acquire funds for general use.
Hence, the default risk would vary little between instruments, and any relative change in spreads among negotiable CDs, EDs, financial CP, and BAs would be a function of a change in the liquidity premium, ceteris paribus.
Negotiable CDs are not covered by FDIC deposit insurance, so CD rates reflect the default risk of the issuing bank.
We also obtain daily money-market rates for three-month negotiable CDs, three-month ED deposits, and three-month financial CP from the Fed's Board of Governors.
The data for outstanding negotiable CDs are not available, so we use large time deposits as our proxy for the size of the CD market.
LaRoche (1993) notes that a change in Federal Reserve regulations at the end of 1990 led to a structural change in the relation among BAs, negotiable CDs, and EDs.
Government, its agencies and instrumentalities, repurchase agreements collateralized by these securities, and highly rated money market instruments including commercial paper, bankers' acceptances, time deposits and negotiable CDs.
The consequent funding pressure on the Japanese banks caused by disintermediation led to the introduction of negotiable CDs offered by commercial banks at liberalized interest rates.
Other growth came in short term negotiable CDs that were acquired to fund the high average mortgage warehouse balances.