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Definition of 'Bear CD'
A certificate of deposit whose interest rate fluctuates in inverse correlation to the value of an underlying market index. In other words, the interest rate paid on the CD increases as the underlying market index decreases in value.
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Investopedia explains 'Bear CD'
This type of CD is used for two main purposes: speculation or hedging. An investor may want the safety of a CD but with the market exposure of a bear CD. This CD is bearish because the investor is betting that the market will fall during the life of the CD.
This type of instrument is also used to hedge actual market positions. If an investor has a long position that is highly correlated to the underlying market index, he or she may invest his or her excess cash in a bear CD, which can offset losses in the market investment.
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Search results for 'Bear CD'
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http://www.investopedia.com/articles/bonds/08/CD-certificate-of-deposit-recession-bear-market.asp
... difficult times are more stable, income-producing debt instruments such as certificates
of deposit (CD). But are CDs actually good protection for a bear market ...
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http://www.investopedia.com/articles/basics/09/balance-portfolio-bear-market.asp
... Both can be used as another way to provide balance to your portfolio during bear
markets. Certificates of Deposit A certificate of deposit (CD) is a savings ...
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http://www.investopedia.com/ask/answers/03/053003.asp
... If everyone is selling in a bear market, does your broker have to buy your shares
from you? If so, won't he be losing his shirt? ... 6 Month CD, 0.46%, 0.47%. ...
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http://financialedge.investopedia.com/financial-edge/1109/Bear-Stearns-Defense-Holds-Lessons-For-Execs.aspx
... Bear Stearns Defense Holds Lessons For Execs. Posted ... defendants. (For background
reading, see Dissecting The Bear Stearns Hedge Fund Collapse.). ...
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http://www.investopedia.com/articles/bonds/09/bear-on-bonds.asp
The Bear On Bonds. ... Product, Today, Last Wk. $10K MMA, 0.50%, 0.51%. MMA, 0.45%, 0.46%.
6 Month CD, 0.46%, 0.47%. 1 Year CD, 0.70%, 0.75%. 5 Year CD, 1.46%, 1.46% ...
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http://www.investopedia.com/articles/07/bear-stearns-collapse.asp
... Finally, the overriding flaw for Bear Stearns was the level of leverage employed
in the strategy, which was directly driven by the need to ... 6 Month CD, 0.46%, 0.47 ...
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http://www.investopedia.com/university/moneymarket/moneymarket3.asp
... of deposit (CD) is a time deposit with a bank. CDs are generally issued by commercial
banks but they can be bought through brokerages. They bear a specific ...
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http://www.investopedia.com/articles/economics/08/wall-street-lingo.asp
... In other words, a sheep can be eaten by a bull or bear if he or she isn't in the
right place in the market. ... MMA, 0.45%, 0.46%. 6 Month CD, 0.46%, 0.47%. ...
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http://financialedge.investopedia.com/financial-edge/0811/Is-This-The-Worst-Market-Decline.aspx
... Filed Under: Bear Market. Provided By: ... The bear market of the 1970s is less familiar
to most, but it was pretty wicked and lasted for quite some time. ...
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http://www.investopedia.com/articles/pf/08/account-protection.asp
... fee for the service and receive one statement summarizing all of your CD investments.
(For related reading, see Are CDs Good Protection For The Bear Market?) No ...
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