| Certificate of deposit was introduced in 2013,and has been rapidly developed over the past years.Due to its convenience for issuer,high credit rating and good liquidity,certificate of deposit has become popular among investors and issuers.This paper studied S bank’s investment in certificate of deposit.Firstly,certificate of deposit was introduced.The components contributing to the yield of certificate of deposit were analyzed and the reasons behind rate hike in 2017 were explained.Secondly,the course of development of certificate of deposit was reviewed,and the necessity of investing certificate of deposit was explained.Thirdly,certificate of deposit was compared with other fixed income assets in terms of liquidity,resource consumed and yield,followed by S bank’s investment strategy.Credit risk,market risk and liquidity risk associated with certificate of deposit investment were then analyzed,and S bank’s risk control methods were explained.Finally,in consideration of institution’s characteristics,market changes and regulatory changes related to certificate of deposit investment,suggestions for future investment were given. |
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