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1–10 of 14 collapsed search results for money market

RBA Glossary definition for money market

money market – The market which deals in short-term discount securities such as Treasury notes, bank bills and promissory notes. Major participants in this market include the Reserve Bank of Australia, banks, superannuation funds, insurance companies, investment trusts, investment banks, building societies and large corporates.

Search Results

Australian Money Market Divergence: Arbitrage Opportunity or Illusion?

16 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Research Discussion Paper – RDP 2019-09 Australian Money Market Divergence: Arbitrage Opportunity or Illusion? ... banking, financial markets, interest rates, money. In recent years, the spread between money market interest rates has widened.
https://www.rba.gov.au/publications/rdp/2019/2019-09.html

Opportunity Cost of Money Market Lending

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Applying the same methodology, we find margins on residential mortgages have been significantly wider than those on money market trades during the sample period (Figure 13). ... This suggests there is a significant opportunity cost associated with
https://www.rba.gov.au/publications/rdp/2019/2019-09/opportunity-cost-of-money-market-lending.html

Conclusion

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Download the Paper 1,465. KB. Opportunities to arbitrage across Australian money markets have seemingly widened and remained persistent in recent years. ... Consequently, money market rates may continue to diverge unless arbitrage becomes more profitable
https://www.rba.gov.au/publications/rdp/2019/2019-09/conclusion.html

Appendix A: Data Summary

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
RDP 2019-09: Australian Money Market Divergence: Arbitrage Opportunity or Illusion? Appendix A: Data Summary. ... RBA statistical table F5 ‘Lending Rates’. Repurchase agreement. Repo rate (1 month bucket) from open market operations.
https://www.rba.gov.au/publications/rdp/2019/2019-09/appendix-a.html

Introduction

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Download the Paper 1,465. KB. Short-term money markets primarily consist of unsecured cash market transactions, repurchase agreements (repos), bank bills and foreign exchange swaps. ... Figure 1: Money Market and Lending Interest Rates. Spread to
https://www.rba.gov.au/publications/rdp/2019/2019-09/introduction.html

Leverage, Profitability and the Consequences for Money Markets

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Leverage, Profitability and the Consequences for Money Markets. Belinda Cheung and Sebastien Printant. ... Major banks were important providers of liquidity in money markets prior to the financial crisis.
https://www.rba.gov.au/publications/rdp/2019/2019-09/leverage-profitability-and-the-consequences-for-money-markets.html

References

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Becker C and P Rickards (2017), ‘Secured Money Market Transactions: Trends in the Australian Repo Rate’, Paper presented at the 22nd Melbourne Money & Finance Conference ‘Evolutionary Trends in the Australian Financial ... RBA (2018), ‘Operations
https://www.rba.gov.au/publications/rdp/2019/2019-09/references.html

Sensitivity Analysis

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Instead, debt funding for these money market investments is externally sourced in a market where interest rates are relatively low. ... Our approach does not measure the degree to which arbitrage is already reflected in observed money market rates.
https://www.rba.gov.au/publications/rdp/2019/2019-09/sensitivity-analysis.html

Estimation Results

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
Figure 7: Net Return on Money Market Trades. Sources: APRA; Authors' calculations; Bloomberg; RBA. ... Subsequently in 2019, net returns in all these money markets declined as the spread between money market rates and cash rate expectations narrowed.
https://www.rba.gov.au/publications/rdp/2019/2019-09/estimation-results.html

Estimating Funding Costs, Gross Returns and Net Returns

13 Sep 2019 RDP 2019-09
Belinda Cheung and Sebastien Printant
money markets and the more medium-term considerations that determine the structure of the balance sheet. ... i. ) for each money market trade i in accordance with current Australian prudential standards.
https://www.rba.gov.au/publications/rdp/2019/2019-09/estimating-funding-costs-gross-returns-and-net-returns.html