US investors play it safe with certificates of deposit as innovation brings new underlyings

Exotic attractions

More exotic: Commodity-linked CDs are increasingly popular

The safety-first mantra that continues to rule over US market sentiment manifests itself in persistent appetite for structured products based upon certificates of deposit (CDs). Backed by the Federal Deposit Insurance Corporation (FDIC), investors continue to flock to this ‘safe harbour'. But where once these financing techniques were coveted for the certainty they offered investors, there are distinct signs that greed for yield has returned. While this is apparent in the latest recovery in stru