Fixed Income and Debt

Money Markets - Part 3 (2018)


This eCourse consists of two modules on money markets securities. Money market instruments are a very important subset of the capital markets. They offer short-term investors liquidity and (usually) high credit quality, but at a lower yield than is available in the bank deposit market. There are interest bearing and discount instruments to suit varied requirements.

Module 1 describes the essential features of Treasury bills, certificates of deposit, commercial paper and bankers’ acceptances. We will examine the nature of these products, their features, how they are used, and their usefulness in today's markets.

As covered in Module 1, interest bearing and discount instruments suit varied requirements, but structural conventions in the market make straight comparisons difficult.

Module 2 covers the structuring and pricing conventions in the money markets. In this module, you will learn how to be comfortable relating one instrument to another in order to arrive at the best investment alternative.


On completion of this course, you will be able to:
- Recognize how treasury bills carry the least risk of all money market instruments
- Classify commercial paper as being an instrument that is issued at a discount and name the type of facility used to back up short-term commercial paper
- Identify the concerns of investors in certificates of deposit
- Interpret the significance of bankers?acceptances being backed by trade receivables
- Calculate the interest/discount, price, and yield for: Interest bearing money market instruments such as standard deposits, certificates of deposit, and repurchase agreements
- Discount instruments such as discount notes, commercial paper, and treasury bills


Module 1: Money Market Securities - An Introduction
Topic 1: Government (Treasury) Bills
Topic 2: Commercial Paper
Topic 3: Certificates of Deposit
Topic 4: Bankers?Acceptances

Module 2: Money Market Securities - Pricing
Topic 1: Interest-Bearing Instruments
Topic 2: Discount Instruments


Relevant Subject
Type 1 - Dealing in securities
Type 4 - Advising on securities
SFC:1.50, PWMA:1.50
Non-Member: HK$665
Staff of Corporate Member: HK$460
All Member: HK$460