I'm thinking of buying some brokered CDs now through a broker such as Fidelity. Since interest rates are high, I'm thinking that I might be able to sell them at a premium on the secondary market during a financial crisis (when interest rates are low), and use the cash to buy stocks.

My thinking is that this is likely better than holding on to cash and using this cash to buy stocks during a financial crisis, because I not only am likely to sell the CD for a profit, I also lock in a high interest rate, and I receive high interest even as banks lower their savings account interest rates due to a financial crisis.

However, I would want to see data to confirm my intuition before proceeding. For example, during financial crises, there may be fewer potential buyers due to a general lack of liquidity, and thus I may have to incur a loss if I want to liquidate the CD.

Where can I find historical data on the price of brokered CDs on the secondary market?

closed as off-topic by Hart CO, Dheer, ChrisInEdmonton, Nathan L, Chris W. Rea Dec 31 '18 at 21:12

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  • Why is there a downvote? Can the downvoter please explain? – wwl Dec 30 '18 at 13:33
  • 1
    +1 from me for a well-asked question. The other voter was probably voting on the feasibility of your plan for making money. – The Photon Dec 31 '18 at 15:53

Brokered CDs often offer a better yield than bank CDs because the seller has to give some yield up to make the CD more attractive and entice a buyer - but it's basis points.

It makes sense that you might be able to sell them for more if rates drop during a financial crisis but that seems like a really long shot bet.

I would surmise that these transactions aren't reported to and tracked by regulatory authorities with database availability since most of the time it's a one off event. They're just CDs at current rates (buy, hold, mature). A traditional Full Service Broker would have an better idea of this market since it's a hands on personal service. A discount broker? Not so much.

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