Since the early 1960s LARGE denomination ($100,000 or more) negotiable certificates of deposit (CDs) have been used by banks and other depository institutions as a source of purchased funds and as a means of managing their liability positions. Large negotiable CDs have also been an important component of the PORTFOLIOS of money market investors. As of the end of 1992 outstanding large CDs at large banks were $114 billion.

Large CDs are generally divided into four classes based on the type of issuer because the rates paid, risk, and depth of the market vary considerably among the four types. The oldest of the four GROUPS consists of CDs issued by U.S. banks domestically, which are called domestic CDs. Dollar-denominated CDs issued by banks abroad are known as Eurodollar CDs or Euro CDs. CDs issued by U.S. branches of foreign banks are known as Yankee CDs. Finally, CDs issued by savings and loan associations and savings banks are referred to as THRIFT CDs.

Since the early 1960s large denomination ($100,000 or more) negotiable certificates of deposit (CDs) have been used by banks and other depository institutions as a source of purchased funds and as a means of managing their liability positions. Large negotiable CDs have also been an important component of the portfolios of money market investors. As of the end of 1992 outstanding large CDs at large banks were $114 billion.

Large CDs are generally divided into four classes based on the type of issuer because the rates paid, risk, and depth of the market vary considerably among the four types. The oldest of the four groups consists of CDs issued by U.S. banks domestically, which are called domestic CDs. Dollar-denominated CDs issued by banks abroad are known as Eurodollar CDs or Euro CDs. CDs issued by U.S. branches of foreign banks are known as Yankee CDs. Finally, CDs issued by savings and loan associations and savings banks are referred to as thrift CDs.