UNDERSTAND FINANCIAL MONEY MARKETS

Money markets, main topics: Interest rate calculations, commercial paper, treasury bills, repurchase agreements, GMRA

Created by: Michiel van den Broek
Finance Trainer & Consultant

What Will I Learn?

• Understand money market products: deposits, money market securities and repurchase agreements
• Understand pricing money market products and make interest rate calculations: day conventions, zero coupon, bootstrapping, true yields and pure discount
• Calculate coupons for broken periods and convert yields
• Get essential knowledge to trade money market securities such as commercial paper, T-bills and certificates of deposit
• Understand forward rates and how an yield curve shifts
• Manage liquidity using repurchase agreements and security lending transactions
• Understand interbank and overnight market benchmarks such as LIBOR, SOFR and €ster
• What is the difference between the Domestic and Euro money market
• Understand the basics of Global Master Repo Agreements (GMRA): legal and economic ownership, reprising, manufactured dividend and failure to deliver collateral
• The characteristics of Classic Repo and (un) documented Sell buy Back
• How Central Banks use repos for money market liquidity
• Repo Custody of Collateral Arrangements: Delivery repo, Hold in Custody (HIC)

Requirements

• No specific knowledge is needed, but you can prepare by enrolling in my beginners Udemy course Understand Banks and Financial markets.

Target audience

• If you work in finance or are interested in money market securities trading
• Central bank professionals
• Accountant and controllers working in the financial industry
• IT professionals involved in financial trading / settlement software
• If you work for a financial institiution liquidity department
• Working capital professional
• Liquidty managment professionals
• Prepare for GARP or ACI