FINANCE IN GLOBAL SHORT–TERM MARKETS

---

SUMMARY

This module enables participants to link the cash, credit and float management of firms to short–term issuing and investing decisions. The importance of coverage in short–term investment and funding decisions is reviewed. Funding markets compared are U.S. commercial paper, Euronote facilities and Eurocommercial paper.

---

OBJECTIVES

Upon completion of this module, participants will be able to:

1. Identify and calculate the optimal cash balance of the firm.

2. List the influences on credit management.

3. Calculate the benefits of float management.

4. Calculate the interest rate/foreign exchange rate parities in global investing.

5. Describe the functioning of the U.S. commercial paper market.

6. Describe the structure of a Euronote facility.

7. Calculate the all–in cost of Euronote drawdown.

8. Calculate the cost of Eurocommercial paper.

9. Compare and contrast borrowing in US–CP, Euronotes and ECP.

Back to modules list

Back to home page