Money market desks

The textbook definition of a money market instrument is of a debt product issued with between one day and one year to maturity, while debt instruments of greater than one year maturity are known as capital market instmments. In practice the money market desks of most banks will trade the yield curve to up to two years maturity, so it makes sense to view a money market instmment as being of up to two years maturity. 

Short-term institutional investors include banks and building societies, money market fund managers, central banks and the treasury desks of some types of corporates. Such bodies are driven by short-term investment views, often subject to close guidelines, and will be driven by the total return available on their investments. Banks will have an addi-... 

This carries on to bank organisation structure. In most banks, the repo desk for bonds is situated in the money markets area, while in others it will be part of the bond division (the author has experience of banks employing each system). Equity repo is often situated as part of the back office settlement or Treasury function. Bank of England, Quarterly Bulletin, February 1997. 

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