Financial Markets
To successfully invest $200m of funds into short term securities with the highest possible yield in order to maximise our return on profit. 10% of our funds are required to be invested in the overnight market and 50% should be available over the next 3 months.
To speculate in the market according to interest rate movements over the next 6 months by buying and selling securities in order to achieve maximum profit from interest rate returns.
Due to the fact that we expect interest rates to rise in the next 6 months we plan to invest our money in short term securities such as (30, 60 and 90) day bank bills, as well as overnight cash. Investing short term provides us with the opportunity to benefit from any rises in interest rates when the securities are “rolled over” which will increase the yield of our return. In comparison to long term investment where the interest rate will be fixed and we will not be able to receive additional profit from an interest rate increase.
It is important that we first investigate the market in order to find the deficit economic units which offer the highest bid so we can obtain the maximum return on investment. Read more…