BUS 422 Lecture Notes - Lecture 3: Unsecured Debt, United States Treasury Security, Municipal Bond
31 Jan 2019
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Document Summary
Money markets- include short-term, highly liquid and relatively low-risk debt instruments. Treasury bills- short-term government securities issued at a discount from face value and returning the face amount at maturity. (money market security) Commercial paper- short-term unsecured debt issued by large corporations. (money market security) Unless you are going to run institutional 21942 (large sums) won"t ever apply to you. Banker"s acceptance- an order to a bank by a customer to pay a sum of money at a future date. Eurodollars- dollar-denominated deposits at foreign banks or foreign branches of american banks. Repurchase agreements (repos)- short-term sales of securities with an agreement to repurchase the securities at a higher price. Federal funds- funds in the accounts of commercial banks at the federal reserve bank. Libor- lending rate among banks in the london market. Treasury notes or bonds- debt obligations of the federal government with original maturities of one year or more.
