Certificate of Deposit Index (CODI)
Contents
Unlocking the Mystery of the Certificate of Deposit Index (CODI)
Discover the intricacies of the now-defunct Certificate of Deposit Index (CODI), once a vital benchmark for adjustable-rate mortgages in the United States. From its calculation methods to its eventual discontinuation, delve into the significance and implications of this index in the realm of financial markets.
Deciphering the CODI: A Window into Adjustable-Rate Mortgages
Gain insight into the workings of the Certificate of Deposit Index (CODI) and its role in shaping adjustable-rate mortgages (ARMs). Explore how this index, derived from the average of dealer bid rates on nationally traded three-month certificates of deposit, influenced interest rates and mortgage terms for countless borrowers.
The Evolution and Discontinuation of the CODI
Trace the history of the CODI from its inception to its eventual demise in December 2013. Understand the factors that led to the Federal Reserve's decision to discontinue the publication of short-term CD rates, effectively ending the era of the CODI as a prominent mortgage index.