This session looks at fixed income and money market products and provides descriptions and characteristics of these products. At the end of this session, you should be able to understand the difference between money market products and fixed income products and differentiate between them based on the issuer, structure and maturity.
Products
Money market securities are best defined as those cash products and securities issued with a maturity of less than one year. There are two broad categories of money market securities; cash or short term deposit type money market instruments and discount instruments.
Those securities with a maturity greater than one year include bonds and other types of fixed income securities such as subordinated debt, hybrids and structured products like residential mortgage backed securities (RMBS) and commercial mortgage backed securities (CMBS).
Term deposits fit into both categories: