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What does the interbank deposit certificate fund mean?
On May 16, it was learned that the third batch of domestic interbank deposit index funds were officially approved, including the interbank deposit index products of Bosera Fund, Guangfa Fund, E Fund, Yin Hua Fund, cathay pacific fund Fund and China Europe Fund. Interbank deposit index funds are gradually favored by investors because of their stable income, and the fund issuance market may set off another wave of enthusiasm. Many people still don't understand what the interbank deposit index fund means, and then look down.

What does the interbank deposit certificate fund mean?

The so-called interbank deposit certificate refers to the book-entry time deposit certificate issued by deposit-taking financial institutions in the national interbank market, which has the characteristics of pledge, transferability and strong liquidity. Interbank deposit index fund mainly tracks AAA index of CSI interbank deposit certificates. More than 80% of the fund assets should be invested in interbank certificates of deposit, and the proportion invested in the underlying index bonds should not be less than 80% of the non-cash fund assets.

Unlike deposits, interbank certificates of deposit can be pledged and transferred with a term of less than one year, which is characterized by strong liquidity. In addition, the issuer of AAA interbank deposit certificates is rated AAA, which is generally issued by banking financial institutions, with the highest credit rating, high liquidity and relatively controllable credit risk. As of March 3 1 in 2022, the scale of China's interbank deposit receipts has approached 14.6 trillion yuan, providing an effective liquidity management tool for banks.

What are the advantages of interbank deposit certificates?

The issuer of 1 has excellent qualifications, and the issuer is a banking deposit financial institution, including policy banks, commercial banks, rural cooperative financial institutions and other financial institutions recognized by the People's Bank of China;

2. Good liquidity. Interbank certificates of deposit are short-term financing tools for banks, as well as good liquidity management tools and money market investment tools;

3 the fluctuation is small, and the overall fluctuation of interbank deposit certificates is small.

Why are interbank deposit index funds welcomed by the market?

Mainly affected by three aspects:

1: As the yield of money fund is getting lower and lower, there are fewer and fewer safe assets, and a product with better extensibility and security is needed to replace it;

2 downwind: because stock funds fluctuate greatly, everyone wants to find a sense of security. The deposit certificate index fund provides everyone with a sense of security. What you buy is not income, but safety and insurance.

3 On-demand: In fact, the demand is to undertake the above. Under the preference of income and risk, the demand will naturally come up.

The income of interbank certificates of deposit belongs to short-term products. Like short-term debt based on goods, it is affected by three aspects: the expectation of monetary policy, the change of interest rate of funds and the influence of market supply and demand.