1. Wednesday, October 6, 2010 - 8:38 PM
The author states,
"First, brokered CDs are callable. That means that the issuer can, on a whim, give you back your principal and yank back its CD. This is likely going to happen at a time when you have to reinvest the money at a much lower interest rate, and that means the high rate on a brokered CD is essentially fictional."
The notion that all brokered CD's are by default callable on a whim, as the author (who by the way is primarily a food author) suggests, is 100% wrong. Ludicrous. Ridiculous. Callable CD's must and always do state themselves as such, with details and call terms included.
Ken, you are not clear about this?
"First, brokered CDs are callable. That means that the issuer can, on a whim, give you back your principal and yank back its CD. This is likely going to happen at a time when you have to reinvest the money at a much lower interest rate, and that means the high rate on a brokered CD is essentially fictional."
The notion that all brokered CD's are by default callable on a whim, as the author (who by the way is primarily a food author) suggests, is 100% wrong. Ludicrous. Ridiculous. Callable CD's must and always do state themselves as such, with details and call terms included.
Ken, you are not clear about this?
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