All things being equal (yield to worst, call protection, maturity date, etc), what factors do you consider when choosing a CD?
In other words does it matter which bank is issuing? Any reason you'd choose a bank offering a lower YTW than another due solely to factors about the issuer itself? (Assume all options are FDIC insured).
I assume they're offering different rates to be competitive (i.e. they are taking a smaller cut to get more business), but why would any investor choose the lower rate? Is there hidden risk in certain issuers?
(Footnote: I'm not planning to make CDs a large part of my strategy. Already invested in the market in multiple ways. Just considering this as an additional diversification.)
Submitted June 22, 2022 at 01:19AM by FaintCommand https://ift.tt/q5i6FKg
