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Brokered CD Question

I bought a new issue brokered CD at Schwab that is to settle next week. As soon as I placed the order Schwab reported its status as filled. During the period prior to settlement are the funds earning interest? Thanks.


  • I doubt that you are getting paid for "float".

    Basically, your funds are reserved (or blocked) until the settlement. Many CDs are subscribed quickly, so this reserving/blocking ensures that your order will stick.

    Count this as friction for buying and rolling over CDs.

    Treasuries can avoid this friction via auto-roll or manual-roll with proper care for maturity and settlement dates.
  • Thanks!
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