what is the differences between CD and MTN? I heard setting up a CD programme is cheaper than MTN....but both products can issue short-term and long-term stuffs, in most currencies....

CDs are higher in the banks capital structure. They qualify as deposits. It also depends which entity issues the MTN. BHC can issue MTN or bank can issue bank notes under an MTN program.

CD is not pari passu with MTN?

QuoteOriginally posted by: abmyersCDs are higher in the banks capital structure. They qualify as deposits. It also depends which entity issues the MTN. BHC can issue MTN or bank can issue bank notes under an MTN program.Are you sure that CDs are higher in the cap structure than MTN? I find that hard to believe. Deposits are unprioritized claims that rank low (first the senior holders have their claim and then I am not sure if junior holders comes and then depo). I think that MTNs quite often are senior but I might be mistaken. Anyone out there who knows?

Medium Term Notes are usually senior and unsecured but can also be issued as sub ordinated debt or in secured format. cheers

QuoteOriginally posted by: freddiemacQuoteOriginally posted by: abmyersCDs are higher in the banks capital structure. They qualify as deposits. It also depends which entity issues the MTN. BHC can issue MTN or bank can issue bank notes under an MTN program.Are you sure that CDs are higher in the cap structure than MTN? I find that hard to believe. Deposits are unprioritized claims that rank low (first the senior holders have their claim and then I am not sure if junior holders comes and then depo). I think that MTNs quite often are senior but I might be mistaken. Anyone out there who knows?I was wrong. In Europe depositors rank pari passu with senior debt holders and in the US senior debt holders are subordinated to depositors. Hence CDs rankhigher in the cap structure than MTN as abmyers corretly pointed out.