Introduction to money market instruments Money market instruments refer to cash; Bank time deposits and certificates of deposit within one year (including one year); Bonds with a remaining maturity of less than 397 days (inclusive); Bond repurchase with a term of less than one year (including one year); Central bank bills with a term of less than one year (inclusive); Other financial instruments with good liquidity recognized by China Securities Regulatory Commission and China People's Bank.
The characteristics of money market instruments are as follows: firstly, they are all debt contracts.
Second, the term is within one year.
Third, it generally shows a high degree of security of principal.
Classification of money market instruments The main money market instruments are short-term government bonds, negotiable certificates of deposit, commercial bills, bank acceptance bills, repurchase agreements and other money market instruments.
(1) Short-term national debt
Short-term treasury bonds are short-term bonds issued by the government to meet the temporary capital demand caused by paying first and collecting later. Short-term national debt is called national debt in Britain and America, and Britain is the first country to issue short-term national debt.
Characteristics of short-term national debt
The short-term national debt with the lowest risk is the direct debt of the government, and the government has the highest credit status in a country. Generally, there is no risk of non-repayment due. Therefore, investors usually think that investing in short-term treasury bonds is basically risk-free.
② High liquidity. Due to the low risk and high reputation of short-term treasury bonds, industrial and commercial enterprises, financial institutions and individuals are willing to invest short-term funds in short-term treasury bonds to adjust their current asset structure and create a very convenient and developed secondary market for short-term treasury bonds.
③ The term is short, basically within 1 year, mostly within half a year.
Types of short-term national debt
① According to the time limit, there are 3 months, 6 months, 9 months, 12 months, etc.
② According to the interest payment method, it can be divided into discounted treasury bonds and interest-bearing treasury bonds, and short-term treasury bonds are mostly discounted treasury bonds.
(2) Large negotiable certificates of deposit
Large negotiable certificate of deposit, also known as large negotiable certificate of deposit, is a time deposit certificate issued by banks. The voucher is printed with a certain face value, deposit, maturity date and interest rate. After maturity, you can withdraw all principal and interest according to the par value and the specified interest rate. Overdue deposits do not bear interest, and large negotiable certificates of deposit can be freely circulated and transferred.
Characteristics of large negotiable certificates of deposit
Large negotiable certificates of deposit are time deposit certificates issued by banks that can be transferred before maturity.
(1) is usually anonymous and cannot be withdrawn in advance, but can be transferred in the secondary market;
② Large certificates of deposit are issued in large denomination standard units;
3 issuers are mostly big banks;
④ The term is mostly within 1 year.
Certificate of deposit is the securitization of bank deposits.
(3) Commercial paper
Commercial paper refers to a negotiable debt instrument with a maturity of 2 to 270 days issued by the issuer to meet the liquidity demand. Generally, it refers to the securities issued by the drawer in business, unconditionally agreeing to pay a certain amount by himself or others, and the holder enjoys certain rights. The commercial paper market has experienced remarkable growth: from 1980 to 2008, the unpaid balance of commercial paper increased by more than 1400%, from 122 billion to173.2 billion.