brokered CD, new - secondary spread

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bikenfool
Posts: 92
Joined: Fri Jul 22, 2011 9:05 am

brokered CD, new - secondary spread

Post by bikenfool » Thu Mar 26, 2020 11:41 am

I'm seeing new issue brokered 2 yr CD's at 1.35 - 1.4% (fido), and secondary mkt at 1.8% . Is this a liquidity spread, or perhaps risk, since the secondaries are selling at over par?

Turbo29
Posts: 778
Joined: Tue May 01, 2018 7:12 am

Re: brokered CD, new - secondary spread

Post by Turbo29 » Thu Mar 26, 2020 11:50 am

Just a guess: A lot of people trying to sell on the secondary market because they need the cash right now.

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