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MONEY MARKET INSTRUMENTS

TREASURY BILLS
n
“T-bills are the Government debt securities that matures in one year or
less from their issue date.A treasury bill differs from other types of
investments in that they do not pay interest in the traditional way. When
an investor wishes to purchase a treasury bill, they buy it at a discount
rate.”
Concept taken from What is a Treasury Bill.
http://www.wisegeek.com/what-is-a-treasury-bill.htm

The Government of Pakistan raise large portion of floating and permanent


debt through the auctions of short term Government of Pakistan Market
Treasury Bills (MTBs)

T-bills are issued through a competitive bidding process rather than


paying fixed interest payments for a price that is less than their face (par)
value and when they mature; the government pays the holder the full par
value.

Finally, the interest is the difference between the purchase price of the
security and what you get at maturity. T-bills are considered to be the
safest investments, because in these Government confirms the holder of
security to pay back face value. Returns are less because Treasuries are
usually safe.

TYPES OF T-BILLS

They are issued with the maturities of

• Three-months (12-Weeks / 90-days)


• Six-months (24-Weeks)
• Twelve-months (one-year)

INVESTMENT CHARACTERISTICS OF TREASURY BILLS

Default Risk-T-bills are on the guarantee of government, so they


have minimum default risk.
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Liquidity-T-bills are highly liquid instrument of financial market.


Securities can be liquidated when ever the holder wants.
Minimum Denomination-T-bills are trade on the face value of
Rs.100 in Pakistan and in denominations of multiples of 100.

HOW TO CALCULATE RETURN ON T-BILLS?

“As we have studied earlier that T-Bills do not carry any interest rate but
instead are sold at a discount from their par value or face value. Thus
their yield is based on their appreciation in price between time of issue
and the time they mature or are sold by the investor.

Bill yields are determined by the discount method; which ignores the
compounding of interest rates, treats the par value as the investment
base, and uses a 360-day year for simplicity.”

Concept taken from (Rose & Marquis 2005) .


The Discount Rate for T-Bills can be calculated by the following formula:

ParNumber
Par360
Value
of Days to
Value-Purchase
Price Maturity

Discount Rate = x

Explained With Example:

Suppose you buy a 12 Weeks T-bill at Rs.98 and keep it until maturity
having face value of rs.100. Then the discount rate on this bill can be
calculated as:

360
100
90- 98)
(100

Dr = x

= 0.06

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MONEY MARKET INSTRUMENTS

This shows that for this T-bill the discount rate will be 6% .

HOW T-BILLS ARE TRADED IN PAKISTAN?

“At start, Treasury bills were issued on ‘tap basis’ for six months at 6
percent per year. Afterwards when the government moved to a market-
based system as part of the process of economic deregulation,
disinvestment, and decentralization in April 1991 then the following
changes were made:

• Introduce the American-style auction-based system.


• The role of primary market restrict to fortnightly auctions, instead of
“on tap,” allowing for the development of a secondary market.
• Primary dealers were appointed.”

Information taken from (Naz Chohan 1991)

State Bank of Pakistan use following two methods to trade T-bills.

• Auction System
• Open Market Operations(OMO)

PRIMARY DEALERS

Only primary dealers can participate in the auctions and OMOs.


• All the commercial banks (having account with SBP)
• NBFIs (Non Banking Financial Institutions)

If the primary dealer wants to buy a T-bill, must submit a bid that is
prepared either;

• Non-Competitively
• Competitively

The Non-competitive bids are normally submitted by the small investors


who agree to accept the price determined by the auction.

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MONEY MARKET INSTRUMENTS

The Competitive bids are submitted by large investors ,who bid


for several millions. They have to specify the return that they
want to receive. If the return specified is too high, might not
receive any securities.

AUCTION SYSTEM

“SBP is acting as an agent on behalf of the government for raising short


term funds from the market. The MTBs are sold by SBP to approved
Primary Dealers through multiple price sealed bids auction.
✔ The Auction for MTBs is held under a fixed schedule on fortnightly
basis.
✔ The actual yield to the investor depends on the accepted bid price
at each auction. Each bidder at an auction gets the amount at his
bid price (if accepted), as opposed to a single price for all the
accepted bids.
In the auctions of treasury bills yield is not set by the central bank but the
bidder. The auctions conduct after every two weeks at Wednesday and
are announced approximately one week in advance. Primary dealers,
which include commercial banks and non bank financial institutions are
only allowed to submit any number of sealed price-quantity bids on their
own behalf or on behalf of clients. All auctions were conducted on a
discriminatory price basis, so each bid formulate in the expectation that,
if accepted, the price bid would be that paid. After the deadline for bid
submission, the bids open in the presence of the bidders.

After the opening of bids, The Ministry of Finance decides on the cut-off
price after seeing the bids; the highest competitive bidders receives bills
and those who bid successively lower price also receive bills until all
available securities have been awarded. Although notionally the size of
the auction issue are pre-announced, in practice the cut-off price seems
to have been the main decision variable and the amount allocated bore
little relation to the pre-announced size.

The setting of the cut-off price was influenced by a number of factors, of


which

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MONEY MARKET INSTRUMENTS

• Debt service costs-cost of the factors related to the debt services,


e.g. cost for organizing auction etc.
• Need for funding-having insufficient funds for regular operations,
also influence the cut-off price, that how urgently funds are
required.
On a number of occasions the authorities decide to reject all bids because
when they feel that the bids are unreasonably low.”
Information taken from Daniel C Hardy (2001)

Summary of auction process shown in the figure.

Fig: Steps Involve in Auction

SETTLEMENT OF BID

“Settlement is normally done through book entry and securities can be


issued with in one or two days after finalizing cut-off price. Primary
dealers must have to maintain a current account (for cash settlement)
with the SBP. The positions of primary dealers are maintained by the SBP
in these accounts. The marketable lot-size for MTBs will be in range of
PKR 100.0mln - 300.0mln (multiples of PKR 100.0mln).”
Information taken from (Naz Chohan 1991)

TAX LIABILITY

“Investors in T-bills are subject to a withholding tax, which is adjusted


against their final tax rate, because the earnings of T-bills are treated as
income of the security holder not the capital gain.”
Information taken from (Naz Chohan 1991)

OPEN MARKET OPERATIONS (OMOS)

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MONEY MARKET INSTRUMENTS

SBP conducted the first formal open-market operation (OMO) sale of


government securities in 1995. Although OMOs were meant to support
interest-rate policy, the MOF first used them only as a borrowing vehicle.
In Open Market Operations rather sale of securities Government can
purchase treasuries back to increase the money supply.
When money is invested in treasuries, it is considered to be out of
circulation since it is held by the government.
When treasuries are purchased by the government, the investor will
probably then invest that money in some sort of securities and if the
securities are checking accounts, savings accounts, money market
accounts, or CDs, that increases the money supply to banks allowing
banks to loan more money.
This also tends to drive interest rates down both for the depositor as well
as the borrower which stimulates the economy.
In OMO Government fix the discount rate before the announcing the new
securities and can be issued when they need funds.

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MONEY MARKET INSTRUMENTS

COMMERCIAL
PAPERnnnnnnnnnnnnnn nn
Commercial paper consists of short-term, unsecured promissory notes
issued by well-known companies that are financially strong and carry high
credit rating. Commercial paper is generally used to meet immediate
cash needs.

Funds raised from commercial paper are commonly used for current
transactions i.e. to purchase inventories, pay taxes and cover other short-
term obligations rather than for capital transactions like long-term
investments.SBP and SECP started process of creating commercial paper
market in Pakistan in 2003.

MATURITY PERIOD OF COMMERCIAL PAPER

The commercial paper shall be issued for maturities between 30 days and
one year from the date of subscription. Commercial papers are mainly in
the primary market. Opportunities for resale in secondary markets are
very limited.

Concept taken from Commercial paper


http://www.reliancepakistan.com/products/products_tfcs.php

WHO CAN ISSUE COMMERCIAL PAPER

Only highly rated companies and financial institutions can issue


Commercial Paper, as it is unsecured and investors can only depend
upon the creditworthiness of the issuer.

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The equity of the company is not less than Rs. 100 million as per
the latest audited balance sheet and the company maintains a
minimum current ratio of 1: 1 and debt/equity ratio of 60: 40.
The company has obtained the credit rating from a rating agency.
The minimum credit rating of the issuer shall be “A-” (medium to
long-term) and “A2” (short-term). At the time of issue of
commercial paper company rating should not be more then two
months old.
The company should have no overdue loan or defaults in the Report
obtained from the Credit Information Bureau (CIB) of the State Bank
of Pakistan (SBP).

SIZE AND DENOMINATION

The minimum size of the issue of commercial paper shall not be less than
Rs.10 million. The commercial paper, in case of private placement, would
be denominated in Rs. 100,000 (face value) or in multiples thereof and in
case of offer to general public, may be denominated in Rs. 5,000 or in
multiples thereof.

Concept taken from Guideline for issuing commercial paper


www.secp.gov.pk/corporatelaws/.../Guidelines_CommercialPaper.doc -

MODE OF ISSUE AND DISCOUNT RATE

The commercial paper shall be in the form of a promissory note and be


issued at such discount to face value as may be determined by the issuer
keeping in view the prevailing T-Bill rates, KIBOR and its Credit Rating.

Concept taken from viability of commercial paper


www.thefinancialdaily.com/viabilityofcommercialpaper-news

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MONEY MARKET INSTRUMENTS

CALCULATION OF RATE OF RETURN ON COMMERCIAL


PAPER

Most commercial paper is issued at discount from par and Yield to


investor can be calculated by bank discount method just like treasury
bills. Invester’s yield arises from the price of security between its
purchase date and maturity date.

For example; if a million Rs commercial paper with a maturity of 120


days is acquired by an investor at a discount price of Rs. 950,000.the
discount rate of return on commercial paper will be

DRcp = (Par Value – Purchase Price) / Par Value * 360 /


Days to Maturity

DRcp = (1,000,000 – 950,000) / 1,000,000 * 360 /120 = 0.15

so,discount rate of return on this commercial paper will be 15%.

Rate of return on commercial paper fluctuate with the daily ebb and flow
of supply and demand in marketplace.

{Rose, marquis (2005) page 334}

WHO INVESTS IN COMMERCIAL PAPER

Commercial paper may be issued by way of Public offer and/or to


Scheduled Banks, Financial Institutions etc. Commonly commercial papers
are bought by Money market funds as the issue size is often too high for
individual investors. Generally regarded as a safe investment and not
backed by collaterals

ADVANTAGES FOR INVESTOR

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MONEY MARKET INSTRUMENTS

➢ Due to varying credit standings, investments in commercial papers


may bring in higher yields than time deposits with lower risks.
➢ It is considered to be a safe investment since the financial situation
of a company can easily be predicted over a short period.

Concept taken from short term Financing through commercial paper by


Muhammad haider
http://ezinearticles.com/?Short-Term-Financing-Through-Commercial-
Paper&id=2350465

REPURCHASE AGREEMENT
(REPO)nnnnnn
Repurchase agreements are agreements between a borrower and a
lender where the borrower, in effect, sells securities to the lender with the
stipulation that the securities will be repurchased on a specified date and
at a specified, higher price. The securities serve as collateral for the loan.
Most Repo agreements mark the collateral to market daily. If the value of
the collateral drops below the required margin, then the borrower must
send more securities to the lender to maintain margin or some money to
reduce the principal outstanding.

Example: we assume a financial institution has Rs 1 million cash surplus.


The borrowing dealer and lending company agree on 1 million RP loan
collateralized by treasury bills, with the dealer agreeing to buy back the
bills within a few days and the interest on loan.

Financial Institution Security Dealer

- Rs. 1 million + Rs 1 million

+ Securities worth 1 million - Securities worth 1


million

After Maturity of Agreement

+ Rs. 1 million - Rs 1million

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- Securities worth 1 million +


Securities worth 1 million

MAJOR BORROWERS AND LENDERS

Major borrowers include government bond dealers of Treasuries and


federal agency securities, and large banks. Government securities are the
main collateral for most repos, along with federal agency securities and
mortgage-backed securities etc. Active lenders include state and local
governments, insurance companies, non-financial corporations, and
foreign financial institutions who find the market a convenient, relatively
low risky way to invest temporary surplus cash that may be retrieves
quickly when the need arises.

CALCULATION OF REPO INTEREST INCOME

The difference between the underlying securities current price and


repurchase price is the amount of interest paid by the borrower to the
lender. Usually the securities pledged behind an Repo are valued at their
current market price plus accrued interest on security less a small
“haircut” (discount) to reduce the lender’s exposure to market risk.
Longer the term and riskier or less liquid the security pledged, larger the
“haircut” will be charged.

Interest income from repurchase agreement can be determined by this


formula

RP Interest income = Amount of loan x Current Repo Rate x


(Repo Term in days/360 days)

For example; an overnight loan of Rs 1 million to a dealer at 12% Repo


rate would yield interest income of Rs 333.33.

RP Interest income = 1,000,000 x .12 x (1/360) = Rs 333.33

{Rose, marquis (2005) page 293}

TYPES OF REPO (ACCORDING TO MATURITY)

Overnight repos
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Overnight repos are 1 day loans

Term repos

Term repos have terms of greater than 1 day—usually weeks to months

Open repo

Open repo or continuing contracts are a contractual relationship that


allows the borrower to borrow funds up to a certain limit, without signing
a new contract. However, each party has the right to terminate the
contract on a short notice. The interest rate on open repos is slightly
higher than on overnight repos.

PURPOSE OF REPO

Large banks borrow from dealers and other non-bank institutions through
Repo in order to avoid deposit reserve requirements and prohibitations
against their paying interest on deposit accounts, while the dealers enter
in RPs to borrow at the low cost RP interest rate in order to purchase
interest bearing securities. Companies and financial institutions eager to
loan its temporary cash surplus to avoid losing even a single day’s
interest.

ADVANTAGES OF REPO

➢ The main benefit of Repo to borrowers is that the Repo rate is less
than borrowing from a bank.
➢ The main benefit to lenders over other money market instruments
is that the maturity of the Repo can be precisely tailored to the
lender's needs.

Concept taken from Repurchase agreements


www.riskglossary.com/repurchaseagreements-html
http://www.investopedia.com/terms/r/repurchaseagreement.asp

BANKER’S ACCEPTANCEnnnnnnnn
nnnnnn
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MONEY MARKET INSTRUMENTS

The literal meaning of the term acceptance is approval. In financial terms


acceptance means a vow to pay a definite amount of money. The person
who will pay is called as the promissory while the one who will receive is
the beneficiary.

The document which is the evidence of this promise is called a draft.


When this draft tells the promissory to pay the money on a
predetermined specified date then this draft is termed as a time draft.
The promissory puts his

Signature
The word accepted on top of his signatures and
The date on which the amount will be paid.

Now the promissory is legally obliged to pay the amount as mentioned in


the draft to the beneficiary because it has been accepted properly by him
according to all requirements of official acceptance.

If the time draft is formally accepted by a bank then it becomes a


banker’s acceptance.

In case of a bankers acceptance the initial promissory is obliged to pay


the sum of money and the interest money charged before or on the
maturity date to the bank while the bank is obliged to pay the money to
the beneficiary. The bank becomes the primary obligor.

Banker’s acceptance is usually used in trade; mostly for international


business but is also frequently used for domestic dealing as well. The
maturities of banker’s acceptance
mostly range from 30 to 180 days.
It allows the international as well
as national dealers to trade with
each other. As the dealing firms
have not met or may even never
meet; have a problem of trusting
each other. So banker’s
acceptance minimizes their risk.
The promissory uses the bank’s http://www.eagletraders.com/books/afm/i
credit worthiness instead. Hence the m 1

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MONEY MARKET INSTRUMENTS

beneficiary is satisfied. Meanwhile the promissory also gets more time to


make the payments.

EXAMPLE TO ILLUSTRATE THE MECHANISM OF


BANKER’S ACCEPTANCE

Suppose that you own a software house and you need computers. You
order a dealer in Japan to send you ten computers on credit. Now that
dealer does not know your credit worthiness. A very easy way to resolve
this problem is that you go straight to your bank with which you have a
very good past record. There you get a time draft issued on which the
date you will pay the money is mentioned.

Most probably the date mentioned will be one or two weeks later after
getting the shipment. The bank trusts you because of your good credit
rating and it signs the draft adds its signature and mentions the date. This
draft has now become a banker’s acceptance. The draft is then sent to
the manufacturer who is very much satisfied now as he knows the banks
credit rating.

Concept taken from “Acceptance: Banker's Acceptance, Trade


Acceptance” http://www.fraudaid.com/Dictionary-of-Financial-Scam-Terms/Acceptance.htm

According to Rose the importer secures a line of credit from his bank and
sends the documents to the importer. Now the foreign dealer can draw a
time draft against the issuing bank. The exporter goes to his bank which
is called the accepting bank. Now this bank gives the importer that
specified sum of money and sends the shipment documents and the time
draft to the issuing bank.

The issuing bank after verifying stamps the word accepted on the draft.
By doing this it has become liable to paying that some of money to the
bank. The accepting bank is paid that specific sum of money.

Concept taken from Rose, Peter & Marquis, Milton. (2005), pg.322-327
So by deploying both of these ways a banker’s acceptance can be
created. In essence whenever any bank will agree to pay any importer on
behalf of the exporter that document having all these abiding will be
termed as the banker’s acceptance.
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MONEY MARKET INSTRUMENTS

SECONDARY MARKET FOR THE BANKER’S


ACCEPTANCE

There is a very strong and affluent market for it. The issuing bank can
either keep it in his portfolio or sell the bankers acceptance in the money
market. It is sold at a discount from the value which will be payable on
maturity. In this way the seller is getting funds from the money market
hence it provides liquidity to the seller.

BA provides a very low risk interest income to the buyer. They are mostly
sold at a spread over t-bills and this rate is referred to as the BA rate.
Some banks also purchase the BAs which are nearing their maturity in
order to increase their liquidity.

Concept taken from “What is a Banker's Acceptance (BA)?”


http://www.mysmp.com/bonds/bankers-acceptance.html

If the accepting bank which is the primary obligor fails to pay the amount
the holder of the BA (assuming the bank has sold the BA in the open
market) has recourse back to the issuer of the draft the secondary
obligor.

The secondary obligor has the unconditional responsibility to pay the


acceptance if the primary obligor dishonors it. This characteristic makes
the BA; referred to as a two-name paper, a safe investment instrument
usually with lower rates than might be available in a direct borrowing.

Concept taken from Ira Weissman, “Bankers' acceptance financing--the


link to financing global market activity”
august 1996 / the CPA journal
http://www.nysscpa.org/cpajournal/1996/0896/cpai82f96.htm
The BA’s marketability is limited only by the reputation of the accepting
branch and the market demand.

The net proceeds after the sale = the face amount of the acceptance -
the discount rate (interest rate*days into maturity*face amount) + the
bank’s acceptance commission. The combination of these is called the
“all in” rate.

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MONEY MARKET INSTRUMENTS

BA financing may be used by exporters, importers, domestic buyers and


sellers, traders, shippers, manufacturers, processors, distributors, or
almost anyone involved in international or domestic trade.

Concept taken from Michael Dennis “Bankers’ acceptance When a


drawee acknowledges in writing on the face of the draft that the
buyer will pay the draft at maturity. (See also Draft, Drawee.)
financing”
http://www.encyclopediaofcredit.com/WebHelp/financing_methods/banker
s_accpt.htm

EURODOLLAR DEPOSITS
nnnnnnnnnnnnn
Eurodollars are the leading component of the Eurocurrency markets
today. There is a need for Eurocurrency markets because funds are
required in international currencies worldwide mainly in Dollars, Euros
and Pounds. Eurodollars are the deposits of US dollars in banks which are
located outside United States.
These can also be the branches of the US banks located outside US. The
deposits are recorded in the denomination of dollars rather than their
home currency. Generally, the "euro" prefix can be used to indicate any
currency held in a country where it is not the official currency.
These deposits are loaned to the home offices of the banks in US, lent to
business enterprises that have to make their payments in dollars. It can
be retained as well to meet the reserve requirements and to maintain
liquidity. These can be lent to government if it needs dollars and to
private investors as well. The Eurodollar deposits are always moving in
the form of loans.
MECHANISM OF EURODOLLAR DEPOSITS

We suppose that you own a textile firm in Pakistan. To keep the example
simple we assume that you shipped an assignment worth one million to
the American importer. Here we also suppose that you have an account in
an American bank as well. The importer pays the bills in dollars and
deposits it in your account held at the American bank. After all these
transactions a Eurodollar deposit has not been created.
If we further mature the same example and presume that you transfer
that one million dollars in your bank in Pakistan then the deposit that is
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MONEY MARKET INSTRUMENTS

now created in Pakistan is a Eurodollar deposit. As it is a dollar account


maintained outside US. The dollar amount in the Pakistani account can be
given as a loan to an investor who is liable to pay the money in dollars.
In all these transactions this fact should be acknowledged that the
amount of dollars was merely transferred in between the banks but the
original dollar amount remained the same. Eurodollar activity did not alter
the total reserves of the US banking system.
The chain of Eurocurrency and Eurodollars will remain functioning until
they are in demand and funds are being deposited in the international
banking system. The Eurocurrency accounts are formed by giving out
loans and are destroyed when the loan is repaid. Hence they did not
create money but they act as an efficient distributor of liquidity.
Eurocurrency deposits are usually held from one day till one year so they
are pure money market instruments. Many are held for one month that is
the usual time period for the shipment of goods. They are mostly
interbank liabilities when loaned so a fixed interest rate is charged on
them. There is no central location for the trading of the Eurocurrency
deposits. They move rapidly from one bank to another to meet the
liquidity requirements of corporations, governments and Eurobanks
themselves.
Eurocurrencies are not without risk. They are volatile and sensitive to
fluctuations in interest rates and currency values. Difference of interest
rate or value between two countries can initiate the massive flow of funds
from one to another. There is a political risk as well that the governments
might restrict the flow of money across borders.
The daily cost of funds derived from Eurodollars is
Amount to be loaned * interest rate * 1/360
Text adapted from Rose, Peter & Marquis, Milton. (2005), pg. 316-322

FEDERAL
FUNDSnnnnnnnnnnnnnnnnnnnn
Federal funds refer to the overnight borrowings which are undertaken in
order to meet the state bank’s reserve requirements. These are
transferred from the lending institution’s account to the borrowers
account.
The funds are not physically transferred. When they are repaid then an
entry in books satisfies the whole loan. The most important borrower in
the federal funds market is the commercial banks. Other financial
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MONEY MARKET INSTRUMENTS

institutions, security dealers, business corporations and the local


government provide readily available funds for lending in the federal
market.
The banks and DFIs are legally obliged to keep a certain amount of funds
in the reserve account which is kept with the state bank of Pakistan. This
is equal to the fraction of the deposits which are kept with a bank.
To meet the requirement of this legal reserve ratio the banks borrow
funds mostly on overnight basis from the federal funds market. Most
federal funds are for overnight basis and they have a fixed interest rate.
Today the online system has made it very easy to know that which
institutions are short of funds and which have surplus. The one who is
short gets the benefit that its immediate requirement of money is fulfilled
while the one with surplus gets interest income on its funds and thus
earns it through the federal fund market.
The interest rates which are levied on these funds highly fluctuate daily. It
depends on the volume of funds which is surplus in the market and the
volume of fund needed by the market.
Text adapted from Rose, Peter & Marquis, Milton. (2005), pg. 307-310

REFERENCESnnnnnnnnnnnnnn
nnnnnnnn
“Acceptance: Banker's Acceptance, Trade Acceptance”
http://www.fraudaid.com/Dictionary-of-Financial-Scam-
Terms/Acceptance.htm (Accessed 28th Oct, 2009)

Daniel C Hardy (2001) (pg. 29-30); The Pakistan Development Review.


Profitability and Pricing in Treasury Bill Auctions: Evidence from Pakistan
(Accessed October 28,2009)

http://ezinearticles.com/?Short-Term-Financing-Through-Commercial-
Paper&id=235046
(Accessed October 20, 2009)
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http://www.investopedia.com/terms/r/repurchaseagreement.asp
(Accessed October 28, 2009)

Ira Weissman, “Bankers' acceptance financing--the link to financing global


market activity”
august 1996 / the CPA journal
http://www.nysscpa.org/cpajournal/1996/0896/cpai82f96.htm (Accessed
31st Oct, 2009)

Michael Dennis “Bankers’ acceptance When a drawee acknowledges in


writing on the face of the draft that the buyer will pay the draft at
maturity. (See also Draft, Drawee.) financing”
http://www.encyclopediaofcredit.com/WebHelp/financing_methods/banker
s_accpt.htm (Accessed 28th October, 2009)

http://www.reliancepakistan.com/products/products_tfcs.php
(Accessed October 19, 2009)

www.riskglossary.com/repurchaseagreements-html
(Accessed October 27, 2009)

Naz Chohan (1991) (pg. 406-409);Mortgage-Backed Securities Markets in


Asia. http://www.adb.org.
(Accessed October 28, 2009).
Rose, Peter & Marquis, Milton. (2005), Money and Capital markets:
Financial institutions and instruments in a global marketplace. McGraw-
Hill/Irwin

www.secp.gov.pk/corporatelaws/.../Guidelines_CommercialPaper.doc -
(Accessed October 19, 2009)

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MONEY MARKET INSTRUMENTS

www.thefinancialdaily.com/viabilityofcommercialpaper-news
(Accessed October 20, 2009)

“What is a Banker's Acceptance (BA)?”


http://www.mysmp.com/bonds/bankers-acceptance.html (Accessed 28th
Oct, 2009)

What is a Treasury Bill. http://www.wisegeek.com/what-is-a-treasury-


bill.htm)
(Accessed October 29, 2009).

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