Negotiable Certificates of Deposit

Negotiable Certificates of Deposit Meaning:
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.

Negotiable Certificates of Deposit Example:
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.