Definition of Yankee CD

Yankee CD

cd issued in the domestic market, typically New York, by a branch of a foreign bank.

Bull CD, Bear CD

A bull cd pays its holder a specified percentage of the increase in return on a specified
market index while guaranteeing a minimum rate of return. A bear cd pays the holder a fraction of any fall in
a given market index.

Certificate of deposit (CD)

Also called a time deposit, this is a certificate issued by a bank or thrift that
indicates a specified sum of money has been deposited. A cd bears a maturity date and a specified interest
rate, and can be issued in any denomination. The duration can be up to five years.

Contingent deferred sales charge (CDSC)

The formal name for the load of a back-end load fund.

Euro CDs

cds issued by a U.S. bank branch or foreign bank located outside the U.S. Almost all Euro cds
are issued in London.

Lock-up CDs

cds that are issued with the tacit understanding that the buyer will not trade the certificate.
Quite often, the issuing bank will insist that the certificate be safekept by it to ensure that the understanding is
honored by the buyer.

Variable rate CDs

Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
date, the coupon on the cd is adjusted to reflect current market rates.

Yankee bonds

Foreign bonds denominated in US$ issued in the United States by foreign banks and
corporations. These bonds are usually registered with the SEC. For example, bonds issued by originators with
roots in Japan are called Samurai bonds.

Yankee market

The foreign market in the United States.

Certificate of Deposit (CD)

A bank deposit that cannot be withdrawn for a specified period of time. See also term deposit.

OECD

Organization for Economic Cooperation and Development, consisting of most of the world's developed economies.

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