Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
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.
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.