Fixed Income and Debt

Money Markets - Part 2 (2019)


This eCourse consists of two modules. Module 1 introduces official interest rates and their influence on financial markets and the economy as a whole. It outlines the use of simple, zero-coupon, interest rates and their application to accrual products in the money markets. It also examines market rates and the currency day count conventions used in money market calculations. Finally, this module shows how reference rates such as LIBOR and Euribor are calculated in today’s money markets, and how overnight indices have developed as a benchmark replacement for LIBOR and Euribor.

Module 2 provides a high-level overview of Australian interest rate benchmarks, with a focus on the bank bill swap rate (BBSW) and the cash rate.


On completion of this course, you will be able to:
- Recognize the influence of official central bank rates on money market rates of various maturities
- Calculate interest on various money market products
- Identify market benchmark rates such as LIBOR and Euribor, and the growing significance of overnight indices as market benchmarks
- Define the bank bill swap rate (BBSW) and how it is calculated
- Describe the history of the BBSW and how it has evolved
- Define the cash rate and how it is calculated
- List the uses of the BBSW and the cash rate in Australian financial markets
- Identify other important Australian interest rate benchmarks


Module 1: Interest Rates & Benchmarks
Topic 1: Market Rates & Maturities
Topic 2: Interest Rate Calculations
Topic 3: Reference Rates & Indices
Topic 4: Convexity

Module 2: BBSW & Other Australian Benchmarks
Topic 1: Australian Interest Rate Benchmarks – Overview
Topic 2: BBSW
Topic 3: Other Interest Rate Indicators


SFC:2.00, PWMA:2.00
All Member: HK$580
Staff of Corporate Member: HK$580
Non-Member: HK$820