Money Markets

The money market specializes in very short-term debt securities (debt that matures in less than one year). Money market investments are also called cash investments because of their short maturities. There are several different instruments in the money market, offering different returns and different risks from Treasury Bills to Certificates of Deposit (CDs) to commercial paper to repos. Money market securities are very liquid, and are considered very safe, money market funds have a lower return than other securities but offer a higher return than the interest rate on cash.