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7 simple hacks to speed up your data analysis in Python

Posted on by Imarticus Learning

Python is a high-level programming language with a built-in data structure with dynamic typing and data binding. It is general-purpose and straightforward to use the language used to create various computer programs. At Imarticus, we help you learn Python online through the PGA program.

Python creates various programs like developing websites, task automation, software, data analysis, and data visualization. Python is an easy-to-learn language; it is shared between accountants and scientists. It is also used to organize finance and numerous other day-to-day chores.

Python and data science go hand in hand with each other. The data analysts use this language to conduct complex statistical calculations, create data visualization, manipulate and analyze data. Python in web development is pervasive; it includes sending and receiving data processing data while communicating with the database. It also helps in the routing of URLs and ensuring security. 

Python is a dynamic language supporting structured and object-oriented programming. It is the language that focuses on readability, and it is the most accessible language that is why it attracts developers and thereby has a large developer community. 

Python helps in data analysis through the following steps:

  • Python helps to efficiently perform high computational tasks with libraries like Pandas and Numpy.
  • Libraries like beautiful soup and scraps help extract data from the net.
  • Python libraries like Matplotlib and Seaborn help in the analysis of pictographic representation and visualization of data.
  • The Scikit-learn library in Python makes complex mathematical calculations efficient and straightforward.
  • Python library such as OpenCV handles the operations on the image. 

Data Analysis With Tableau

With the PGA course at Imarticus, we help you learn Tableau, data visualization, and data analytics. This course will help you build interactive dashboards and publish them on online Tableau. 

Data analytics is the presentation of data with a blend of colors, dimensions, and labels to create a visualization for providing insight into business and making informed decisions. It is an unavoidable aspect of business analytics as it helps enterprises analyze trends and make decisions quickly and visually. For this visualization and data discovery, you need the Tableau tool.

For business intelligence and data visualization, you need Tableau as it is easy to learn, fast to use, and intuitive for consumer use. 

Data Analysis Using SQL

SQL is the database querying language that helps simultaneously interact with multiple people’s databases. One of the most flexible languages combines a learning curve with a complex depth to help users create tools and dashboards for data analytics.

SQL is famous for quick creation and interaction with the database, and it is also a simple language performing complex data analysis. This language uses many valuable tools such as excel popular python libraries like pandas combined with its internal logic to interact with the data sets. 

So, what are the ways to use SQL for data analytics? SQL uses its base infrastructure and easy-to-use dashboards and reporting tools for communication with complex instructions and fast manipulation of data. One of the other interesting properties of SQL is simple accessibility, strategic organization, and simple, manageable, and understandable interaction. 

Through the PGA program at Imarticus, we help you unfold many uses of SQL in data analytics, such as direct integration into other frameworks, additional functionality, and the ability to communicate effectively. SQL is the tool that acts as an intermediary between the usage and storage of complex data and the end-users, and for using this tool, you need to know Python.

Tech Enabled Leverage: What does 2022 hold for engineers pursuing a credit analyst certification?

Posted on by Imarticus Learning

When someone takes a loan, there is a probability of either loan repayment or being a defaulter. Credit risk management is foreseeing the chances of incurring loss and then formulating a contingency plan of action. With credit analyst certification from Imarticus, you can learn to manage the risk effectively.

Every business organization has to take a specific risk because there won’t be much growth and expansion of business without risk. 

You may take a rational thought of risk, but you should also know how to manage it efficiently. With the CRU course at Imarticus, you will learn to identify and manage internal and external risks. 

The career of engineers pursuing credit analyst certification in 2002 is very lucrative. With the CRU course at Imarticus, they will learn the effective ways to achieve organizational and strategic goals to become financially stable and grow financially. 

Credit Risk Management Courses

In 2022 the course in credit risk management at Imarticus is promising. It provides chances of a good salary, exposure, and opportunities for advancing in a career. The credit analysis is the basis for banking industries and other lending financial institutions. You may formulate corporate and retail lending strategies with accurate credit analysis.

 It will also help you in project finance, real states business, finance trade lending, retail portfolios, and capital debt markets.

There is a high demand for a credit risk analyst in 2022 because the risk in credit impacts everyone, whether it is the banking industry or other financial institutions. It also helps non-financial institutions because they need to analyze their credit risk when they take credit from their channel partners or vendors.

Credit Risk Analyst course

The course designed by Imarticus develops a future credit risk analyst. It will provide a complete and comprehensive understanding of the topic to learn about credit risk and its principles. You will also learn in-depth analysis of ratio and cash flow analysis.

The CRU course at Imarticus gives a detailed structure to make projections with a decent combination of theory and practice. After completing this course successfully, as a credit risk analyst, you will be able to evaluate the creditworthiness of a new client while analyzing the same for the existing clients. It is crucial to assess the creditworthiness of the current client regularly.

A credit analyst does so by analyzing the data on the present financial condition and relating it with the information collected from customers. An analyst coordinates with retail sales agents or credit risk officers for this.

An excellent and reliable credit risk analyst will analyze the client’s financial statements, access the credit history, and monitor the job or business history with a look at the payment report. He will also observe and analyze the business operation, the types of markets in which the business operates, and its competitors before taking a risk or granting a loan.

Therefore, we can summarise that credit risk is a good, promising, and rewarding career for engineers in 2022. Through the CRU course at Imarticus, you will learn to analyze strategies to anticipate the risk in credit and thereby develop strategies to manage it effectively.

Does Machine Learning Excite You? Check Out Our Data Analytics Course!

Posted on by Imarticus Learning

Machine learning (ML) is truly a blessing to modern computing and technology, possessing the ability to endow systems and machines, the ability to think for themselves and tackle tasks on their own without any supervision of humans. Machine learning is able to do this by creating artificial neural networks which simulate how human brains work. Machine learning is assisted by data science and supports its applications in various fields.

Even though machine learning was initially invested upon with the primary focus on Artificial Intelligence, it was later recognized as a separate field and started being heavily invested upon from the 1990s and is one of the most valuable fields of computing that has one of the highest industry requirements of skilled professionals and freshers holding expertise in various skills and tools which assist in machine learning.

In this article, we will learn more about machine learning and how a well-planned data analytics course can help you progress in your career if you are already in this field or how it can help freshers get exposed to ML. 

What is machine learning?

Machine learning first came into existence due to the interest of having systems and computers learn from data on their own. “Machine learning” was first termed by Arthur Samuel in 1959, who was working in IBM at that time. During his tenure there, he was responsible for various important projects related to computer gaming and AI. It all started when Mr. Samuel took the initiative to teach computers how to play games through the game of Checkers on IBM’s first commercially available computer, the IBM 701.

Eventually, machine learning started being used for various purposes and borrowed many models and approaches from statistics and probability theory. AI uses predictive analytics along with machine learning to execute the various responses or trigger actions. All of this is acquired from the training data set which helps the machine in learning and equips it with the information.

Machine learning is an important branch of computing and data science that creates autonomous systems which learn from data on their own. A machine trained with clean processed data eventually identifies trends and patterns to respond to situations without human supervision.

Machine learning also promotes the automatic improvement and development of algorithms or data models which improve on their own. Machine learning is an important part of Artificial Intelligence which uses data mining, predictive analytics, and various tools to assist machines in learning more extensively with methods like deep learning to allow them to execute functions that emulate the responses of a human, just much more accurate and fast.

Machine learning is also not biased unless specifically asked to do so, hence promoting unbiased AI-supported systems that make fewer errors. Data mining is also a very relevant field and quite valuable to machine learning as it helps systems come to conclusions without having some bits of data or having unknown bits of information. Machine learning is a type of predictive analytics which is backed by data and is exploratory in nature.

Perks of a Data Science Prodegree from Imarticus

The Data Science Prodegree is a great data science course that students and working professionals can choose to gain more exposure and skills in the fields of machine learning, business analytics, and AI.

 

  • Acquire skills and learn how to use required tools and algorithms
  • Gain valuable industry and course certifications
  • Get placement support and opportunities from the best companies
  • Advanced live classroom learning supported by technology and real-life projects

 

Imarticus’s Data Science course with Placement is a great choice if you wish to advance in your career and learn about machine learning, AI, business analytics, or data analysis which will help you become more effective as a data scientist and pursue your dream career in this respectable field.

Is taking CAT 2022 required for an IIM Calcutta Investment Banking and Capital Markets course?

Posted on by Imarticus Learning

The Executive Programme in Investment Management in collaboration with IIM Calcutta is the perfect course for experienced professionals looking to advance and strengthen their professional futures. To continue your studies in an IMM you must have taken a CAT exam, in the case of the executive program taught by Imarticus in collaboration with IMM Calcutta, this is not necessary.

However, it is still important to know what the CAT exam is and what the requirements are for the IIM Calcutta Investment Banking and Capital Markets course.

What is the CAT exam?

In India, the Common Admission Test (CAT) is one of the most reputed entrance exams to management institutes in the country. The Indian Institute of Management (IMM) conducts this test on a rotational basis. 

The CAT exam has a specific syllabus, and it is common to prepare for it so as to devote adequate time to each section. The test is made up of three main sections:

  • Quantitative Aptitude: Arithmetic, mensuration, geometry time and work, number system, and algebra.
  • Logical reasoning and Data Interpretation: Seating Arrangement, Syllogism, puzzles, blood relation, data case lets, graphs, decoding, and coding tables.
  • Verbal ability and reading comprehension: Para summary, Para jumbles, verbal ability, reading comprehension, and odd sentence out.

In the case of the IIM Investment Banking and Capital Markets course offered by Imarticus in collaboration with IMM Calcutta, this exam is not a prerequisite to apply for the program. However, of course, other requirements must be met in order to apply.

What Do You Need to Apply for The IIM Calcutta Capital Market Certification?

The IIM Investment Banking and Capital Markets course is perfect for those looking to become a director or simply looking to boost their career. The minimum requirements to apply for the program are:

  • minimum 2 years of relevant professional experience.
  • minimum 50% marks in graduation/postgraduation.

Being part of the IIM investment banking & capital market course will give you the tools to enhance the productive development of any company. The knowledge and experience will help you develop strategies to achieve your goals or even set them.

What Will You Learn with This Certification?

Investment banking is in charge of helping private companies, governments, and individual clients to raise capital. To raise such funds, investment banking positions itself as the client’s agent in order to place securities (through issuance and sale) in the capital markets. 

On the other hand, the capital markets offer a wide range of financial products with different levels of risk for all types of investors. This variety allows a wide range of people to invest, those who have a lot of capital and those who have little, those who specialize in the field and those who are beginners, those who play it safe, and those who risk more.

In general, you will not only understand these concepts, but you will know how to use them throughout your career. Some of the topics you will have the opportunity to study in IIM Calcutta’s capital markets certification are:

  • mergers, acquisitions, and restructurings
  • portfolio fund management
  • securities market research and valuation
  • securities market sales and trading
  • securities market regulations
  • financial accounting and analysis
  • financial management
  • financial economics
  • debt capital markets
  • equity capital markets

Imarticus is proud to partner with IMM Calcutta to offer this great program where you will not only learn the fundamentals but also the advanced components of Investment Banking and Capital Markets.

Here’s why learning about derivatives is essential to begin a career in the capital markets

Posted on by Imarticus Learning

Yearning for a career in the capital market but do not know where to start? To flourish in your career, you will need to have a thorough understanding of derivatives.

Imarticus Learning has come up with a Financial Services and Capital Markets course to help such aspirants choose this career path. This article will help you grasp the basic concept of derivatives and how it works in the capital market. 

What are Derivatives?

A derivative acts as an agreement or contract between two or more parties, the value of which depends on the agreed-upon underlying security, index, or financial asset. The parties make use of a derivative to assume risk with the anticipation of a proportionate dividend (speculation) or to mitigate risk (hedging). Some commonly used derivatives in the financial market are swaps, forward contracts, warrants, futures contracts, and equity or stock options. 

A Comprehensive Understanding of Derivatives

Generally deemed as advanced investing, derivatives are secondary securities whose value is entirely based on the worth of the underlying primary security they are linked to. Even though the value of a derivative depends wholly on the underlying security, owning it does not necessarily mean the ownership of the asset. There are mainly two classes of derivative products – Lock and Option. 

  • Lock Derivative: The respective parties are bound by these products from the outset for the lifetime of the contract in accordance with the agreed-upon terms. Some commonly used lock derivative products are future contracts, swaps, and forward contracts.
  • Option Derivative: These products offer the legal holder the right to buy or sell the underlying security or assets at an exact price before the expiration date of the option. However, the owner is not obligated to purchase or sell off if they do not wish to do so. Some commonly used options of derivative products are equity and stock options. 

Benefits of Derivatives

Now that you have a basic understanding of the different classes and types of derivative products, it is critical to comprehend how they work. While derivates offer substantial benefits in the capitals market, the products work in a fairly complex manner. To get a more straightforward understanding of the various benefits and their working mechanics, you can take the example of any small-scale farmer.

A tomato farmer is worried about the fluctuating prices in the vegetable market due to inflation and the global pandemic. He wants to protect his business and contacts an investor. The investor decided to pay him at a rate of INR 30/kg of tomato in 6 months when the yield is ready. 

  • Hedging – By entering into this futures contract, the farmer immunizes his business from price fluctuations in the market. If inflation causes the price to fall below INR 30/kg, then the farmer is protected. But if the price rises to INR 50/kg, then he stands to miss out on the profit earned by the investor instead. Note that none of the parties is speculating on the price of the commodity, but the hedge is the way for each party to manage the risk.
  • Derivative swap – Consider that the farmer has prospered and bought all the neighboring tomato farms through a massive variable-rate loan. But when he decides to expand more and contacts another investment firm, the investor refuses to cite his variable-rate loan. The farmer then contacts another friend who has a fixed-rate loan but wants a variable-rate loan in the hope that future interest rates will fall. Both draw up contracts where their respective loan payments get swapped but the names on the loan papers do not change. 

Conclusion

There are other benefits available also such as credit derivatives and options contracts. Hence, to have a desirable career in the capital market, you can take relevant courses from Imarticus Learning to get a capital market certification. It will also give you a comprehensive understanding of derivatives, which will help you prosper more in your career. 

6 software engineering practices to become a software developer

Posted on by Imarticus Learning

Numerous industries like finance, healthcare, insurance, and computer system businesses employ software developers. If you wish to become a software developer, you can choose Imarticus Learning’s SCBI course. It is one of the best certifications for software engineers. 

What are 6 Main Practices for a Successful Career in Software Development? 

To become a software developer, you need to be aware of the business conditions. This will help you understand what skills you need. A software engineering certification is also essential. Similar to these, there are a few more practices that will ensure a long and rewarding career. Take a look at the following things you can do to improve your prospects in the field.  

 

  • Learn Programming Languages

 

If you wish to become a successful software developer, you need to learn relevant programming languages. You can focus on Java as it is a programming language that works for different platforms and purposes. You can also learn other programming languages like C++, Python, and Scala. 

 

  • Choose a Niche and Practice

 

Software development includes different aspects like app design, DevOps, and the development of computer infrastructure. So you need to choose a niche. As a software developer, you will need to focus on one particular aspect and hone your skills. You can always focus on different aspects but it is best to become an expert in one area. This will help companies identify you as a developer within that niche and thus, improve your chances of employment. 

 

  • Create a Portfolio

 

As you develop your skills and try your hand at design or development projects, you need to start creating a portfolio. A portfolio will help companies understand the extent of their knowledge.

 

  • Explore Potential Industries to Figure Out a Target

 

You need to check what industries are currently requiring software development services. Once you figure out which industry you want to work in, you can start learning the necessary skills. It is important to research every industry and then work towards an end goal. 

 

  • Focus on Soft Skills

 

While industry knowledge and software development training are necessary, you also need to have proper soft skills. Spend time improving your techniques, interact with peers and experts and build a network. 

 

  • Receive Training and Certification for All Skills

 

The final practice which is crucial is a certification. While you can be a self-taught software developer, it is best to receive a certificate from a renowned institute like Imarticus Learning. This will help you stand out and also approach important companies in the industry. 

How to Start Your Career as a Software Developer? 

Before you start a career in software development, you need to enroll in a software developer course. At Imarticus Learning, we offer Certification in Software Engineering for Cloud, Blockchain, and IoT. For this course, Imarticus Learning has collaborated with IIT Guwahati and E&ICT Academy. Experts from these institutions have created a curriculum that is futuristic and closely related to the current business needs and conditions.

Academicians hold interactive sessions and encourage students to learn through active participation. You can also interact with your peers and develop your soft skills. The duration of this program is 9 months and over this period, you will receive intensive, hands-on training. You will learn the fundamentals of new-age software development and engineering and software architecture.

Once you complete the course from Imarticus Learning, you will be able to sit for interviews and land lucrative jobs at reputable companies. The industry experience that you receive through 6 Capstone projects will help you secure your future as a software developer.

Charting the course of cryptocurrencies in 2022

Posted on by Imarticus Learning

With the increasing popularity and demand for cryptocurrencies, the industry is in need of more fintech professionals. The year 2021 saw a wider acceptance of this alternative currency. Those who want to start a trading business based on crypto and blockchain must have a basic understanding of this. Since there are now rules and regulations on this type of currency, the basic understanding is more important than ever. 

To help them all, there are numerous online courses available on cryptocurrency and fintech. In order to master this area, one must choose a quality and competent course that would help mold you for the job.

Some rules to follow in 2022

The interested investors and traders of cryptocurrency must follow some basic rules in 2022. Since there are going to be more entries towards this industry, it is important to know the rules and follow them diligently. 

  1. Rule number one is to religiously do your research about the subject, even if there are tools and programs to help you with it. They can only help you as much but it is you who needs to take the final step. Make sure to understand the financial and technical analysis.
  2. Crypto has always been volatile but the massive pumping could end up having a landslide in its value. It is likely to have some cooling down period and extended consolidation. But it may not be a major factor for an investor. At the same time, it can be crucial for a trader. 
  3. Rule number three is not to follow the online hype. Give more importance to the utilities of crypto rather than who is talking about it and assuming its progress in 2022. 
  4. The next rule is to play safe with the old school players in the industry. They are all tried and tested players that are safe for newcomers. 
  5. Keeping up with the latest events and news about crypto is the next rule. The various crypto events conducted across the globe could be significant for the progress of this industry in 2022. 
  6. Finally, the golden rule is to give more importance to building your knowledge about this field. Look for the various platforms that can help with trading tools, insights, risk analysis, etc. 

Online courses for cryptocurrency

The best route for understanding cryptocurrency is the financial technology courses that are suitable for both traders and consumers. One such eminent course is the Professional Certificate in Fintech with Imarticus. It is a short-term course of 140 hours, spread over four modules. 

Each module concentrates on the payments, technology used for payments, lending process, and the technologies used for lending. The knowledge gained here is applicable to businesses and their problems. The final exam conducted here will be application-based to assess your knowledge.

You can choose from the core courses of 100 hrs or the pro course of 140 hrs that have the border synopsis of the industry in the former and a comprehensive in-depth course in the latter. The core course will be part of a group while the pro course will be taken individually. 

Conclusion

For a brighter future with cryptocurrency in 2022, you must wisely choose those fintech courses online that provide a border and in-depth knowledge. It will be better rather than choosing any random course that will not help you build your network and work on finding suitable career opportunities in the industry. 

6 tips to ace your certified ethical hacker (CEH) exam

Posted on by Imarticus Learning

As the world continues to progress towards global digitalization in all spheres, added security issues are a big concern. Cyber security issues such as malware, hacking, phishing, or ransomware are deployed rapidly to steal sensitive information.

The best way to keep these attempts at bay is by working with ethical hackers to strengthen security systems and protect devices from any possible malicious attack. Emerging market opportunities are encouraging ethical hackers to seek cyber security certifications to find a place in the industry. And, CEH is one of the leading choices.

One of the most popular certifications for ethical hackers is also equally complex to tackle. CEH or Certified Ethical Hacker certification, offered by EC Council, comes with a three-year validity and tests the skills and qualifications of candidates applying for seeking a career in ethical hacking.

The certified ethical hacker training is a core program, comprehensively created to train candidates in the most advanced tools of black and grey hacking methods to learn how they break into organizations, analyze threats, and help companies secure a system.

Here are some tips to ace your certified ethical hacker exam!

Create a Checklist With Different Segments

Confused about which topic to pick first? Stop getting overwhelmed with the vast syllabus, but create a small checklist and mark every important point within it. From theory modules to practical projects, lists can simplify work and motivate you to get work done quickly. In addition, checklists lessen the chances of leaving any topic behind.

Practice Through Test Modules

Going through test modules is an excellent way to test your knowledge and time management skills. Practice papers can drastically change the trajectory of your learning process by giving valuable insights into your progress and areas demanding more attention. Continuous practice with test papers is most likely to improve your problem-solving skills in a limited time period.

Join the CEH Community to Learn More

Studying along with people appearing for the same examination, teachers, and those who have already been through it can be a rewarding experience. CEH community members share informative posts worldwide, delivering both practical and theoretical awareness about various topics. Forums also allow questions about problems you are stuck on.

Use Recommended Study Material

Extensive study guides are available for candidates to prepare for examinations. So, students do not have to go overboard with their preparations. Visit the official website or CEH community spaces to learn about the required resources for the examination. Study guides also offer a list of topics to cover, simplifying your work to assemble study material and then learn.

Run Through The Exam Pattern

The official EC Council website extends important information related to the exam and preparation. Visit the website and learn all about the format, syllabus, mark weightage, and various other aspects that have a say in your results. Knowing the examination format will enable you to frame answers in the most suitable manner.

Enroll in Training Courses

Simply using study material on your own can be a difficult take to make it through the exam. Getting enrolled in a certified ethical hacker course is an excellent way to sharpen your hacking skills and enhance your knowledge about CEH certification. Choosing a cybersecurity course can be a great addition to both your skillset and resume!

Achieving CEH certification is a great boost for your hacking career. So, give it all to your examination. Follow the right tips and tricks to achieve success. The best way to ensure your mind retains information is through practicing. In a nutshell,  practice as much as you can to enhance your skills further!

Robot pizza delivery: The tale of AI and smartest self-driving engineers

Posted on by Imarticus Learning

The demand for AI certification courses is increasing day by day. People are interested in understanding this technology and learning how they can utilize this knowledge for their growth and how they can come up with unique innovations to help make their lives easier. One such innovation is the Robot pizza delivery system!

The tale of self-driven pizza delivery ‘robots’

When you order pizza online, you will see options- takeaway and delivery. Now, people in Houston, Texas have an additional option for their Domino’s Pizza delivery, NURO 2. It is a smart robot that delivers your pizza to your doorstep. Customers can track these self-driven robotic vehicles on GPS. On delivery, they need to enter the PIN to get access to their orders. 

NURO is a startup founded by Dave Ferguson and Jiajun Zhu. This AI-based company added robotics into the picture to produce the spawn of their original project Google’s self-driven cars. The founders were the leads of the projects that included Machine Learning, computer vision, prediction, for the former and the latter handling the perception and stimulators.  

After quitting their jobs with Google, they founded this company and now have thousands of employees and are making hundreds of self-driving robotic vehicles for deliveries. 

What it means is that their core technologies involve AI and Machine learning which helps achieve this feat. It also shows that even a startup by someone having expertise in the technology can achieve much more and faster than the giants in the field. 

Learning AI and ML

These days one can easily find a course to learn AI and ML. But what matters more is what exactly you learn and from where you get the expertise. When you choose a course, it’s better to be from one of the leading institutions such as the IIT. 

You can enroll for the IIT AI ML course, the Certification In Artificial Intelligence & Machine Learning, By E&ICT Academy, IIT Guwahati. It is a 36-week course with a 3-day on-campus immersion at the IIT. The curriculum covers all the latest technologies associated with AI to help you get a strong base of the technology. 

Participants will be getting to work on the ML and Deep learning projects to shape them into experts in this field and prepare for the in-demand job profiles. 

More about the AI ML course

This Artificial Intelligence certification is not for novices but for those with a degree in related subjects such as Computer, engineering, science, maths, economics, or statistics or having at least 2 years of experience in related fields. 

The classes will be online-mode except for the 3 days on the campus. The live training classes will be conducted by experts in the industry and by the professors at the academy. 

There will be a Capstone project towards the end of the course which will be from various industries such as real-estate, security and surveillance, mobile manufacturing, hospitality, airline, marketing, healthcare, advertisement, education, e-commerce, etc. You can choose your project as per your interest. 

Apart from the project the participants will be getting mentorship assistance for motivations, tips, and encouragement for the progress, and will also get long-term assistance and connections, even after the course. 

Conclusion

The certification in AI is available for beginners and experts and one can choose the most suitable one according to the industry and interests. The prospects of using AI in day-to-today lives is increasing exponentially. Those who have creative visions must surely learn more about this technology. Who knows, maybe you can also come up with such innovations as the robot pizza delivery!

Historic Returns: Money market instruments and functions

Posted on by Imarticus Learning

Historic Returns: Money market instruments and functions

The money market is the set of wholesale markets where the exchange of short-term financial assets, up to 18 months, takes place; with a very low level of risk, largely thanks to the solvency of their issuers and high liquidity. This type of financial market includes the interbank market, the Treasury bills, and notes market, the certificates of deposit market, the bills of the exchange market, and, in general, the market for all short-term financial assets.

What determines the money market?

The main objective of the money market is to provide users and economic agents with the possibility of holding part of their wealth in the form of securities or bonds, with a high degree of liquidity and an acceptable return. The main economic agents participating in the money market, both offering and demanding short-term funds, tend to be mainly banks, savings banks, and public administrations.

Non-bank financial institutions, such as life insurance companies, also frequently use the money market as an outlet for surplus cash, although they usually invest their cash holdings in long-term securities.

Characteristics of the money market

The money market is characterized above all by the following features:

  • The participants in the money market tend to be specialized and well-resourced financial institutions.
  • The assets traded have a very low level of risk thanks to the solvency of the organizations. There is a high level of security.
  • They are highly liquid because they have a very short maturity. Investors will have liquidity at the moment they need it.
  • Transactions can be carried out directly or through specialized intermediaries.
  • They are very flexible: the money market investor has the flexibility to invest in a large portfolio of securities and securities, which will result in a diversification of risk even if the options for return diminish.

A distinction must be made between the primary and secondary markets. The primary market is where new securities, commercial paper, are issued and can be issued. The secondary market is where securities that have already been issued are traded. This implies that the purchasers of the securities buy them from the owners and not from the issuers. 

Types of money markets

There are several types of money markets, as detailed below:

  • Corporate asset market: corporate bonds stand out, where debt instruments are issued by a company on a short-term basis and have a payment obligation. It is a way of financing businesses and the guarantee of payment is the company itself.
  • Interbank money markets: in this market financial firms conduct credit and lending operations through short-term derivatives, interbank deposits, short-term interest rate swaps, and other financial assets, with a maturity period of either one day or one week.
  • Government debt money market: this market deals with government debt. Normally after notification of the calendar, the Treasury issues a series of auctions each year.

When to use it?

Money market investments should be made when you have the liquidity to invest, but you will need it soon and without being able to take excessive risk. This is when the money market is used because of its high liquidity and safety. In this way, the money is not tied up in the bank, but the investor knows that he can access it at any time and that it is safe because of the guarantees offered by the issuers.

Generally, money market assets can fulfill three roles in portfolios: 

  • to support planned (and even unplanned) expenses
  • to act as a buffer against unexpected liquidity events
  • to lessen the negative impact of future negative corrections in financial markets and to have an amount available to take advantage of future investment opportunities.

How do learn more about this?

The Certified Investment Banking Operations Professional of Imarticus equips you with the skills and knowledge necessary to enhance your career in investment banking. Realize your potential and enter the world of finance on the right foot.

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