Presentation about money market bills, a type of credit instrument.

2. Money Market Bills are negotiable financial
instruments bought and sold in the money
market.

3. A money market is a meeting place for users and
suppliers of short term funds. Like in other
markets, transactions in a money market are
consummated upon agreement on the prize. For
the most part, money markets provide those with
funds—banks, money managers, and retail
investors—a means for safe, liquid, short-term
investments, and they offer borrowers—banks,
broker-dealers, hedge funds, and nonfinancial
corporations—access to low-cost funds.

4. Fund User – companies with high credit rating
that are in need of funds.
Fund Supplier – individuals or corporations with
excess liquidity who are looking for possible
investment outlets for their excess funds.
Broker – individuals or institutions engaged in the
buying and selling of money market instruments.

5. Interbank call loans – These are loans which
should be paid upon demand or call by the lending
institutions. They do not have definite maturity
dates. These call loans are resorted to by banks
which borrow from and lend to each other
overnight funds to meet their daily reserve
deficiency. This will enable the lending banks to
earn from their excess reserves.

6. Promissory Notes – These are also called dealer
papers. They are short term indebtedness issued
by institutions as direct obligors.
Repurchase Agreement – These are papers sold by
dealers to buyers at an agreed price. The dealer
undertakes to buy the same paper from the buyer
at a specified future time and at a price agreed
upon.

7. Certificates of Assignments – These are debt
instruments which evidences lawful ownership of
the holder to the extent of the Peso value indicated
on the face of the instruments or a batch of an
original lump sum of promissory notes.
 Certificates of Participation - These are debt
instruments which evidences lawful ownership of
the holder to the extent of the Peso value indicated
on the face of the instruments or a portion of an
original lump sum obligation subsequently broken
down and denominated into a different Peso value.

8. Commercial Papers – It is an instrument which is
issued, endorsed, sold, transferred or conveyed to
another person or entity with or without recourse,
specifying the indebtedness of any person or entity,
especially banks and non-banks performing quasi-
banking functions.
C.B.C.I. ‘s – Or Central Bank Certificate of
Indebtedness. They come in different
denominations and are tax-free and earns
reasonable interest rate.

9. Treasury Bills – These are bearer notes or debt
instruments sold every week at a discount by the
Central Bank through competitive auction. The
investor earns profit between the buying price and
the face value of the treasury bill.
D.B.P. Progress Bonds – Issued by the DBP and are
tax-free and convertible into preferred stocks of
selected private corporations under the DBP.

10. Other government securities:
a. PW and Ed Bonds
b. LBP Bonds
c. Treasury Bonds
d. Treasury Notes
e. Capital Bonds
f. CCP Bonds
g. ACA Bonds
h. EPZA Bonds
i. Socio-economic Bonds
j. Premyo Savings Bonds