What is ‘Yankee Certificate Of Deposit’
A certificate of deposit issued by a foreign bank in the United States. As they usually have a minimum face value of $100,000, Yankee certificates of deposit are generally used by institutional and other large investors looking to invest funds in instruments with a relatively high degree of safety, although they are unsecured.
Explaining ‘Yankee Certificate Of Deposit’
Yankee certificates of deposit can most often be found in New York financial markets. They are generally negotiable, which enables them to trade in a secondary market. Typically, they have a maturity of less than a year.
Further Reading
- Slapped in the Face by the Invisible Hand: Banking and the Panic of 2007 – papers.ssrn.com [PDF]
- Interest-Free Treasury Bonds (IFTB): Islamic Finance and Legal Clarifications – www.cribfb.com [PDF]
