Financail Markets

Objectives:
Primary
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.
Secondary
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.

Money Investing Strategy
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 ...