What is ‘Yankee CD’
A certificate of deposit (CD) that is issued in the United States by a branch or agency of a foreign bank. A Yankee CD is a foreign certificate of deposit denominated in U.S. dollars, issued in the U.S. to American investors. A foreign company can raise capital from U.S. investors by issuing Yankee CDs.
Explaining ‘Yankee CD’
Yankee CDs are negotiable instruments, and most have a minimum face value of $100,000, making them appropriate for large investors. Unlike traditional CDs that can be cashed before maturity for a small penalty, Yankee CDs usually cannot be cashed in prior to their date of maturity. If they are cashed in before maturity, the penalty can be substantial. Yankee CDs are usually issued in New York by foreign banks with branches in the U.S., and, in particular, New York.
Further Reading
- The" other" imbalance and the financial crisis – www.nber.org [PDF]
- Cultural distance and bond pricing: Evidence in the Yankee and rule 144A bond markets – onlinelibrary.wiley.com [PDF]
- Variable ticket pricing in major league baseball – journals.humankinetics.com [PDF]
- Measuring Ethnic Clustering and Exposure with the – www.tandfonline.com [PDF]
- The financial impact of IT security breaches: what do investors think? – www.tandfonline.com [PDF]
