Yankee CDs Law and Legal Definition
Yankee CDs are certificates of deposit issued in the U.S. market by the U.S. branch of a foreign financial institution. Yankee CDs are denominated in U.S. dollars. The minimum face value of a Yankee CD is $100,000. A Yankee CD cannot be cashed before maturity. Yankee CDs are negotiable instruments. A Yankee CD is guaranteed by the banks and can be sold in derivative markets. Usually large investors buy Yankee CDs as they have the characteristic of low-risk, low-interest security. Most Yankee CDs come from New York. For raising capital from American investors, non-American companies usually choose to issue a Yankee CD in the U.S.