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Post by newtecher on Nov 16, 2022 3:42:35 GMT
So it looks like new brokered CD yields are still near highs even though treasuries yields have climbed off their recent highs. I have never purchased brokered CDs before but they look attractive. At first blush, it looks pretty straightforward since new issue CDs are purchased at par without commission and the secondary market sale commissions are usually around 0.1% (which is not negligible). Can someone point to online resources talking about caveats of purchasing of brokered CDs or just share personal experiences of what to watch out for? Thank you in advance!
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Post by yogibearbull on Nov 19, 2022 13:01:20 GMT
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Post by newtecher on Nov 19, 2022 13:37:29 GMT
Thanks, yogi! In the last few days, I already purchased a decent amount of brokered CDs at 4.8 to 4.9% yields (non-callable 2,3, and 5 year maturity) from Wells Fargo, AmEx and Discover bank. I understand they are less liquid than treasuries but the extra yield makes it worth it, I think.
What do you mean by "illiquid despite the quotes you may see". If I see the current (fluctuating) price in my portfolio, can I reasonably expect to be able to sell at this price (minus 0.1% commission) or other complications involved in selling?
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