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Learn about the following:

Why managing liquidity is important. The products used. Loans and deposits. Libor and Euribor. Simple interest calculations. Certificates of deposit. Discounting. Commercial paper. Credit and interest rate risk.

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Course Summary

Money markets menuMoney market interestMoney market calculations

Money market LiborMoney market calculations 2Money market risk

  • 45 minutes
  • 6 question multiple choice test
  • Why managing liquidity is important
  • The products used
  • Loans & deposits
  • Libor & Euribor
  • Simple interest calculations
  • Certificates of deposit
  • Discounting
  • Commercial paper
  • Credit & interest rate risk

Money Markets - the details

1. Loans and deposits

  • The wholesale market
  • Libor, Euribor
  • Interest calculations, example
  • Actual 360 and 365
  • Bid and offer
  • How much dealers make

2. Certificates of deposit

  • How they work, advantage
  • Cash flows
  • Price, discounting, example

3. Commercial paper

  • Issuance
  • Spread to Libor
  • US commercial paper
  • Ratings
  • Discount rate, example
  • Cash flows
  • Price, discounting, example

4. Risks

  • Credit risk
  • Interest rate risk

5. Summary

6. Test

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