Money Market

The money market is a market for short-term funds which deals in monetary assets whose period of maturity is up to one year. These assets…

Market risk (also incorrectly called interest rate risk) is the risk of bond rates rising and the holder making a capital loss. This is the…

Counterparty risk is twofold: the risk of tainted scrip entering the market, and settlement risk. The former involves the sale of tainted (fraudulent) certificates by…

Government Debt: As the largest issuer of bonds (in most countries) the central government deserves special mention. Because the central government is the largest issuer…

Special purpose vehicles (SPVs) are also large issuers of bonds in many countries. Generally, the banks create or encourage the creation of SPVs. These vehicles…

There are many reasons for borrowing in the bond market, but the fundamental reason is to acquire long term finance or funds, usually for long-term…

The long term undertakings of a fixed capital nature of issuers are what give rise to the issue of bonds. Many companies and governments and…

Trading in bonds (secondary market broking and dealing) is a size able business in most financial markets. As noted earlier the secondary market is either…

The money market is usually defined as the market for marketable short-term debt instruments and the bond market as the market for marketable long-term debt…