Negotiable Certificates of Deposit
Negotiable certificates of deposit or commonly abbreviated as NCDs is a short term to medium investment. They are bearer instruments and are also negotiable securities. They are issued by banks that tend to issue NCDs with a term to maturity that are up to 1 year. The investment is sold at a discount to its face value and these securities are negotiable within the secondary market.
The instrument is typically available only in large denominations with most use by institutional investors. Historically the US was the first country to issue NCDs in 1961.