ABOUT MLCDs
Market-Linked CDs (MLCDs) are FDIC-insured certificates of deposit whose returns are linked to the performance of an underlying asset or group of assets. These may include equity indices, commodities, currencies, or interest rates. MLCDs offer a variety of structures that allow investors to align market exposure with specific objectives.
Capitalize on a market view (bullish, bearish, or market-neutral)
Complement different investment objectives (conservative, moderate, or aggressive)
Gain exposure to a specific asset class or sector
Help mitigate overall portfolio risk
Market-Linked CDs are designed to give investors exposure to the performance of an underlying asset while preserving key features of a traditional certificate of deposit. When purchased at par and held to maturity, MLCDs generally provide 100% principal protection through FDIC insurance, subject to applicable limits. This structure allows investors to pursue market-linked returns with a defined level of capital preservation.
Key Considerations:
