Commercial paper

Money market instruments (including liquidity title or Treasury bills ) are special securities, usually discounted bonds that were issued for the purchase of short-term funds (issued) are. Thus, they are instruments of the money market. The sale price is calculated from the nominal value minus the total run time for the accruing interest.

Thus, the purchase price is to be calculated as follows: Purchase price = face value / [ 1 ( Interest rate in% pa × runtime actual days / 360 days × 100) ]

Species

For money market instruments include:

  • Treasury discount paper ( " discount papers ", "U - treasures "), which until 2004 with a denomination of at least EUR 1 million, since then issued with a minimum denomination of EUR 0.01 of the Federal Republic of Germany.
  • Treasury Bills issued since April 7, 2008 with a minimum denomination of U.S. $ 100 (previously $ 1,000 ) and discounted by the U.S. government ( government bond ).
  • Commercial paper, also called CP, which primarily addresses by world-class industry or in the form of asset-backed securities ( asset-backed commercial paper briefly ABCP ) by special issuing entities (conduits ) are issued. In general prerequisite for the placement and trade is an excellent rating of the issuer. Commercial papers are issued to cover a short-term credit needs.
  • Certificates of deposit, certificates of deposit or CD also called. These are issued by banks money market securities in bearer form. The advantage of CD is that they can be traded on secondary markets. An investor can thus sell a CD prior to maturity again, enough to cover an unforeseen capital requirements.
  • Cash Bills, also called Federal Treasury notes are zero coupon bonds with a maturity of one month.
  • Money market book claims ( GMBF ), issued by the Swiss Confederation and other public authorities in Switzerland. They were first issued by the Confederation in 1979 and since then take a firm position on the Swiss money market. GMBF generally have a term of between three and twelve months and bear interest on a discount basis. In addition to its monetary policy instruments led the Swiss National Bank in 2008 's money market debt register claims, so-called SNB Bills, a. These have a maturity of between one week and one month.

Swell

  • Interest-bearing securities
Structured investment vehicle
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