8- Money Markets Flashcards
1
Q
What are money markets incorporated of?
A
Cash deposits and loans out to 12 months
2
Q
What is SONIA?
A
Sterling over-night index average is the new Sterling benchmark rate based on historic borrowing
3
Q
What is LIBOR?
A
London inter-bank offered rate was the benchmark interest rate and used a forward-looking rate in line with most derivatives
4
Q
What is SOFR?
A
Secured overnight financing rate, FED equivalent of SONIA
5
Q
How do you calculate yield on a T-bill?
A
discount on face value/price x 365/days to maturity
6
Q
What is Commercial paper?
A
Corporate version of a T-Bill
7
Q
What is a Certificate of deposit?
A
Money deposited at a bank for a fixed period, at a fixed rate
