UNDERSTAND MONEY MARKETS (securities, repo's)
What you'll learn
- Understand money market products: deposits, money market securities and repurchase agreements
- Understand pricing money market products and make interest rate calculations: day conventions, zero coupon, bootstrapping, true yields and pure discount
- Calculate coupons for broken periods and convert yields
- Get essential knowledge to trade money market securities such as commercial paper, T-bills and certificates of deposit
- Understand forward rates and how an yield curve shifts
- Manage liquidity using repurchase agreements and security lending transactions
- Understand interbank and overnight market benchmarks such as LIBOR, SOFR and €ster
- What is the difference between the Domestic and Euro money market
- Understand the basics of Global Master Repo Agreements (GMRA): legal and economic ownership, reprising, manufactured dividend and failure to deliver collateral
- The characteristics of Classic Repo and (un) documented Sell buy Back
- How Central Banks use repos for money market liquidity
- Repo Custody of Collateral Arrangements: Delivery repo, Hold in Custody (HIC)
Requirements
- No specific knowledge is needed, but you can prepare by enrolling in my beginners Udemy course Understand Banks and Financial markets.
Description
Welcome!
My name is Michiel van den Broek. After working in finance from 1990, I design financial courses since 2005 to make ‘complex’ finance easy, based on my view that finance is not rocket science.
The money markets are a vital financial market that is essential to our economy as explained in my Udemy course Understand Banks and Financial Markets, in which thousands of students already enrolled.
This course, Understand Money Market will learn you about the main products traded on the money markets: deposits, money market securities and repurchase agreements. The course contains more than 1,5 hours of mp 4 video’s accompanied with downloadable pdf documents (total 20 pages) and quizzes to test your skills and understanding with multiple choice questions (total 34).
Section 2 skills you to understand and make basic interest rate calculations covering several topics such as:
specific day count conventions
calculation of single interest coupons
present and future value calculations
compare yields with different coupon frequency or day count conventions
how to compare pure discount with true yield
the yield curve and implied forward rates
Section 3 is an introduction to traditional money markets benchmarks and products covering topics, such as:
how and why use money market products
the domestic- and Euromarkets
explain several deposit types
LIBOR and recently introduced overnight money market benchmarks
Section 4 covers Tradable Money market securities, such as:
characteristics of main securities:
treasury bills, certificates of deposit and commercial paperthe calculation of initial consideration at issue date
the maturity consideration and interest calculation for different products
Finally, section 5 provides in depth knowledge and understanding of repurchase agreements, repos. The topic basket of this section includes:
legal and economic ownership
collateral types
GMRA documentation and failure to deliver collateral
special trading
sell/buy back transactions
reprising versus margins
repo agents
the use of hold in custody repos (HIC) used by central banks
Please contact me if you have any questions regarding the course program.
Thank you for your interest!
Michiel van den Broek
Who this course is for:
- If you work in finance or are interested in money market securities trading
- Central bank professionals
- Accountant and controllers working in the financial industry
- IT professionals involved in financial trading / settlement software
- If you work for a financial institiution liquidity department
- Working capital professional
- Liquidty managment professionals
- Prepare for GARP or ACI
Instructor
- 4.5 Instructor Rating
- 6,249 Reviews
- 29,354 Students
- 4 Courses
Finance is no Rocket Science
I'm passionate about training. My ambition is to take away the curtain of complexity to make finance understandable for you.
Since 2005 I design financial training programs and have trained thousands of participants working in the finance sector covering topics such as:
Financial Markets and Products; Bank management; Risk management; Asset & Liability management; Business Economics Fundamentals; Analyze financial information to investigate potential money laundering.