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Money Market

Notes

 

  • Short term (< 1 year).
  • Safest form of investment.
  • Low risk / low return.
  • Marketable.
  • Highly liquid.

 


Instruments

 

  • Bankers Acceptances – Company issued paper guaranteed by a bank.
  • Brokers’ Calls – Rate at which brokers borrow from the bank.
  • Certificates of Deposit (CDs) – Bank issued.
  • Commercial Paper (CP) – Company issued.
  • Eurodollars – Dollar denominated deposits outside the US (Euro = outside).
  • Fed Funds – Deposits by banks with the Federal Reserve / Central Banks. Loans between banks (overnight).
  • London Inter-Bank Offered Rate (LIBOR).
  • Repurchase Agreements (Repos/Reverse Repos) – Short term loans (overnight).
  • US Treasury Bills (T-Bills) – Government issued.

The Investment Process

(1) Top Down Approach

Asset Allocation Process
  • Commonly used method by Fund Managers
  • Determine sectors or industries, i.e. Global Industry Classification Standard (GICS)
    1. Communication Services
    2. Consumer Discretionary
    3. Consumer Staples
    4. Energy
    5. Financials
    6. Health Care
    7. Industrials
    8. Information Technology
    9. Materials
    10. Real Estate
    11. Utilities
  • Determine assets for sectors (industries)

 

 

(2) Bottom Up Approach

Security Selection Process
  • Commonly used method by Hedge Fund Managers

 


Efficient Markets

  • Active Management
  • Passive Management

Central Banks

 

 

Commercial Banks, Credit Unions and Building Societies

 

  • ABS Building Society (a division of Greater Building Society Ltd)
  • Adelaide Bank (a division of Bendigo and Adelaide Bank Limited)
  • Advance Bank Australia (a division of Westpac Banking Corp)
  • AMP Bank Limited
  • Arab Bank Australia Limited
  • Australia & New Zealand Banking Group Limited
  • Australia Post (Money Orders)
  • Australian Military Bank Limited
  • Australian Settlements Limited
  • Auswide Bank Ltd
  • B&E Limited
  • Bank of America National Association
  • Bank of China
  • Bank of China (Australia) Limited
  • Bank of Communications Co. Ltd Sydney Branch
  • Bank of Melbourne (a division of Westpac Banking Corp)
  • Bank of Queensland Limited
  • Bank of Sydney Ltd
  • Bank of Tokyo-Mitsubishi UFJ Ltd (The)
  • Bankers Trust Australia (a division of Westpac Banking Corp)
  • Bankwest (a division of Commonwealth Bank of Australia)
  • Bendigo and Adelaide Bank Limited
  • Beyond Bank Australia (a trading name of Community CPS Australia Limited)
  • Big Sky Building Society Limited
  • BNP Paribas
  • BNP Paribas Securities Services
  • BOM Bank of Melbourne (a division of Westpac Banking Corp)
  • BOQ Specialist (a division of Bank of Queensland Limited)
  • BSA BankSA (a division of Westpac Banking Corp)
  • Capricornian Ltd (The)
  • China Construction Bank Corporation Sydney Branch
  • Citibank N.A.
  • Citigroup Pty Limited
  • Commonwealth Bank of Australia
  • Community First Credit Union Limited
  • Community Mutual Ltd
  • Credit Union Australia Limited
  • Cuscal Limited
  • Defence Bank Limited
  • Delphi Bank (a division of Bendigo and Adelaide Bank Limited)
  • Deutsche Bank Aktiengesellschaft
  • ECU Australia Ltd
  • Encompass Credit Union Ltd
  • G&C Mutual Bank (a trading name of SGE Mutual Limited)
  • Gateway Credit Union Limited
  • Greater Building Society Ltd
  • Heritage Bank Limited
  • Heritage Isle Credit Union Ltd
  • Holiday Coast Credit Union Ltd
  • Home Building Society (a division of Bank of Queensland Limited)
  • Hongkong & Shanghai Banking Corporation Limited (The) Australian Branch
  • HSBC Bank Australia Limited
  • Hume Bank Limited
  • IMB Ltd
  • Indue Ltd
  • Industrial and Commercial Bank of China Limited
  • ING Bank (Australia) Limited
  • ING Bank NV (Sydney Branch)
  • JP Morgan Chase Bank National Association
  • Macquarie Bank Limited
  • Maitland Mutual Building Society Limited
  • Maritime Mining & Power Credit Union Ltd
  • Mecu Limited (trading as Bank Australia)
  • Mega International Commercial Bank Co Ltd
  • Members Equity Pty Limited
  • Mizuho Bank Ltd
  • National Australia Bank Limited
  • Newcastle Permanent Building Society Ltd
  • Oversea-Chinese Banking Corporation Limited
  • Police & Nurses Limited
  • Police Bank Ltd (trading as Police Bank)
  • QT Mutual Bank Ltd
  • Rabobank Australia Limited
  • Railways Credit Union Limited t/a myMOVE
  • Rock The (a division of MyState Bank Limited)
  • Royal Bank of Scotland PLC Australia Branch (The)
  • Select Credit Union Ltd
  • Southern Cross Credit Union Ltd
  • St.George Bank (a division of Westpac Banking Corp)
  • State Street Bank and Trust Company
  • STG St.George Bank (a division of Westpac Banking Corp)
  • Sumitomo Mitsui Banking Corporation
  • Summerland Credit Union Ltd
  • Suncorp-Metway Limited
  • Sutherland Credit Union Ltd
  • Taiwan Business Bank Sydney Branch
  • TBT Commonwealth Bank of Australia
  • Teachers Mutual Bank Limited
  • Tyro Payments Limited
  • UBS AG Australia Branch
  • United Overseas Bank Limited
  • Uniting Financial Services
  • Warwick Credit Union Ltd
  • Westpac Banking Corporation

Associations

 

 

Regulatory Authorities

 

 

Credit Rating Agencies

Investment Banks

Front Office

  • Trading
  • Investment Banking
  • Research and Investment Management

 

Middle Office

  • Risk Measurement
  • Risk Management
  • Reporting

 

Back Office

  • Accounting
  • Bookkeeping
  • Auditing
  • Compliance

 

Other

  • Off-Balance Sheet Advisory Services

 


Links

Registries

 

 

 

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