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I am learning some basic concepts in investment. Here is my questions:

Are money market instruments and debt (short-term) same?

From the two links I provided, they look almost the same to me, especially from what specific investment instruments they include.

Thanks and regards!

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The Money Market is a place where one trades Instruments. The market is similar to that of the Stock Market. The instruments traded in Money Markets include Short Term Debt Instruments as well as FX Swap Instruments and Mortgage & Asset Backed Securities. The FX & Mortgage Securities are not Debt instruments per se. They also include other custom created instruments that are traded.

The definition of Short Term debt is any guaranteed instrument with a maturity of less than a year. These instruments are used in various transactions, including retail and the Money Market is not the only place these are traded.

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  • Money markets also include CDs, though, which are term deposits, and not debt per se.
    – user296
    Sep 16 '10 at 14:42
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    "Short Term debt is any guaranteed instrument"? Really? I never understood "Short Term" to mean "guaranteed". Wouldn't you call corporate debt with maturity under a year "Short Term"? With the short maturity it may be safer, but you could still see a default, right?
    – bstpierre
    Sep 17 '10 at 13:39
  • If it were all really guaranteed then we wouldn't have seen any money-market funds break the buck during the financial crisis.
    – user296
    Sep 19 '10 at 16:21

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