Selected U.S. banks and foreign banks with U.S. branches began in the mid- 1980s to issue an innovative new hybrid financial instrument with some characteristics of term CDs and some similarity to medium-term corporate bonds with maturities reaching out beyond one year to as long as 10 years. These new instruments are known as:

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Deposit notes are hybrid financial instruments that combine features of term certificates of deposit (CDs) and medium-term corporate bonds, offering maturities ranging from one to ten years. They were introduced by selected U.S. and foreign banks with U.S. branches in the mid-1980s.