Fixed Income and Debt

Money Markets - Part 1


This eCourse consists of two modules. Module 1 focuses on wholesale money markets, which are markets where the lending/borrowing or buying/selling of short-term funds and securities occurs between large institutions such as banks, institutional investors, corporations, and central banks. The tutorial describes the main market participants, including commercial banks and money market funds, and the key products, such as interbank lending, repos, short-term government securities ("bills", and commercial paper (CP). The module also looks at the major pricing issues in the money markets as well as some developments in recent years in relation to pricing benchmarks.

Money markets play a key role in the economy of every country, and the interbank market in particular is the lifeblood of the money markets in those countries. Module 2 focuses on banks and their role in the interbank money market. The structure of the wholesale money markets is examined, as well as the relationship that banks have with each other in terms of credit and their ability to manage currency payments. The module also describes some of the practicalities associated with trading and settlement in the interbank market.


On completion of this course, you will be able to:
- Identify the role of the money markets and the key players in these markets
- List the features of the main money market products
- Recognize the key issues that arise with regard to the pricing of money market products
- Recognize the global nature of the interbank market and how it functions in that context
- Identify some of the practicalities associated with the interbank market, including intraday deadlines, day count conventions, and interbank payments/settlements
- Recognize the importance of appropriate credit risk assessments in the interbank market and the key elements involved in such assessments


Module 1: Money Markets - An Introduction
Topic 1: Overview of the Money Markets
Topic 2: Key Money Markets Products
Topic 3: Money Markets Pricing

Module 2: Interbank Market
Topic 1: Global Perspective
Topic 2: Market Mechanics
Topic 3: Interbank Credit


SFC:2.00, PWMA:2.00
Staff of Corporate Member: HK$570
Non-Member: HK$840
All Member: HK$570