Yankee CD

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Yankee Certificate Of Deposit

    A certificate of deposit issued by a foreign bank in the United ...
  2. CD Ladder

    A strategy in which an investor divides the amount of money to ...
  3. Face Value

    The nominal value or dollar value of a security stated by the ...
  4. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  5. Negotiable Certificate Of Deposit ...

    A certificate of deposit with a minimum face value of $100,0 ...
  6. Negotiable

    1. Describing the price of a good or security that is not firmly ...
Related Articles
  1. Certificates Of Deposit
    Bonds & Fixed Income

    Certificates Of Deposit

  2. Getting To Know The Money Market
    Options & Futures

    Getting To Know The Money Market

  3. What You Need To Know About Preferred ...
    Trading Strategies

    What You Need To Know About Preferred ...

  4. Understanding The Bond Behemoth That ...
    Mutual Funds & ETFs

    Understanding The Bond Behemoth That ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center