Money Markets

This course introduces the fundamentals of the money markets. Topics include the features and characteristics, issuers and buyers, and the different types of money market instruments. Pricing of the different instruments is explored using examples of a variety of products. A discussion of SOFR rates and curves and their determinants are examined in the context of these instruments.

Course Objectives

By the end of the course, participants will be able to:

• Identify the features and characteristics of money market securities
• Identify the main money market instruments: T-bills, interbank cash markets, repos, brokered CDs, commercial paper, and bankers’ acceptances
• Calculate accrued interest using appropriate day count conventions
• Convert between money market, discount rate and effective yield
• Interpret market quotations between the varying instruments
• Identify the different risks associated with money market debt

Suggested Prerequisites: None

Program Level:Foundational

Advance Preparation: None

Computers and Financial Calculators: Calculators

Recommended CPE Credits: 7