Large dollar amount certificates large designed to be

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Unformatted text preview: dollar amount certificates Large designed to be negotiable designed 2. Specialized secondary market 3. YNCD = (SP – PP + Interest) / PPD. D. Banker's Acceptances 1. 2. 3. Finance import activity Products form the collateral for the BA Rates quoted in WSJ and elsewhere All Rights Reserved Reserved Dr David P Echevarria 4 MONEY MARKET SECURITIES E. Repurchase Agreements (repo) 1. Underlying instrument is a treasury bill Underlying or bond or 2. Contracts designed for very short Contracts periods of investment periods F. Federal Funds 1. The market for lending excess reserves, The frequently over-night frequently 2. Some funds lent by the Federal Reserve Some on an over-night basis on All Rights Dr David P Echevarria 5 Reserved Reserved MONEY MARKET SECURITIES G. Comparison of Money Market Securities 1. 2. 3. Most liquid are T-Bills Best yields are from BA's Money Market funds will have all in their Money portfolio portfolio H. Institutional Use of Money Market Institutional Securities 1. Provide meth...
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