Money Market Instruments In Pakistan Term Paper

MONEY MARKET INSTRUMENTS

TREASURY n

BILLS

“T-bills are the Government debt securities that matures in one year or less from their issue date.A treasury bill differs from other types of investments in that they do not pay interest in the traditional way. When an investor wishes to purchase a treasury bill, they buy it at a discount rate.” Concept taken from What is a Treasury Bill. http://www.wisegeek.com/what-is-a-treasury-bill.htm The Government of Pakistan raise large portion of floating and permanent debt through the auctions of short term Government of Pakistan Market Treasury Bills (MTBs) T-bills are issued through a competitive bidding process rather than paying fixed interest payments for a price that is less than their face (par) value and when they mature; the government pays the holder the full par value. Finally, the interest is the difference between the purchase price of the security and what you get at maturity. T-bills are considered to be the safest investments, because in these Government confirms the holder of security to pay back face value. Returns are less because Treasuries are usually safe.

TYPES OF T-BILLS They are issued with the maturities of • • •

Three-months (12-Weeks / 90-days) Six-months (24-Weeks) Twelve-months (one-year)

INVESTMENT CHARACTERISTICS OF TREASURY BILLS Default Risk-T-bills are on the guarantee of government, so they have minimum default risk. Page 1

MONEY MARKET INSTRUMENTS Liquidity-T-bills are highly liquid instrument of financial market. Securities can be liquidated when ever the holder wants. Minimum Denomination-T-bills are trade on the face value of Rs.100 in Pakistan and in denominations of multiples of 100.

HOW TO CALCULATE RETURN ON T-BILLS? “As we have studied earlier that T-Bills do not carry any interest rate but instead are sold at a discount from their par value or face value. Thus their yield is based on their appreciation in price between time of issue and the time they mature or are sold by the investor. Bill yields are determined by the discount method; which ignores the compounding of interest rates, treats the par value as the investment base, and uses a 360-day year for simplicity.” Concept taken from (Rose & Marquis 2005) . The Discount Rate for T-Bills can be calculated by the following formula: Par360 Value of Days to ParNumber Value-Purchase Price Maturity

Discount Rate =

x

Explained With Example: Suppose you buy a 12 Weeks T-bill at Rs.98 and keep it until maturity having face value of rs.100. Then the discount rate on this bill can be calculated as: 360 100 90- 98) (100

Dr = =

x 0.06 Page 2

MONEY MARKET INSTRUMENTS This shows that for this T-bill the discount rate will be 6% .

HOW T-BILLS ARE TRADED IN PAKISTAN? “At start, Treasury bills were issued on ‘tap basis’ for six months at 6 percent per year. Afterwards when the government moved to a marketbased system as part of the process of economic deregulation, disinvestment, and decentralization in April 1991 then the following changes were made: • • •

Introduce the American-style auction-based system. The role of primary market restrict to fortnightly auctions, instead of “on tap,” allowing for the development of a secondary market. Primary dealers were appointed.”

Information taken from (Naz Chohan 1991) State Bank of Pakistan use following two methods to trade T-bills. • •

Auction System Open Market Operations(OMO)

PRIMARY DEALERS Only primary dealers can participate in the auctions and OMOs. • All the commercial banks (having account with SBP) • NBFIs (Non Banking Financial Institutions) If the primary dealer wants to buy a T-bill, must submit a bid that is prepared either; •

•

Non-Competitively Competitively

The Non-competitive bids are normally submitted by the small investors who agree to accept the price determined by the auction.

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MONEY MARKET INSTRUMENTS The Competitive bids are submitted by large investors ,who bid for several millions. They have to specify the return that they want to receive. If the return specified is too high, might not receive any securities.

AUCTION SYSTEM “SBP is acting as an agent on behalf of the government for raising short term funds from the market. The MTBs are sold by SBP to approved Primary Dealers through multiple price sealed bids auction. ✔ The Auction for MTBs is held under a fixed schedule on fortnightly basis. ✔ The actual yield to the investor depends on the accepted bid price at each auction. Each bidder at an auction gets the amount at his bid price (if accepted), as opposed to a single price for all the accepted bids. In the auctions of treasury bills yield is not set by the central bank but the bidder. The auctions conduct after every two weeks at Wednesday and are announced approximately one week in advance. Primary dealers, which include commercial banks and non bank financial institutions are only allowed to submit any number of sealed price-quantity bids on their own behalf or on behalf of clients. All auctions were conducted on a discriminatory price basis, so each bid formulate in the expectation that, if accepted, the price bid would be that paid. After the deadline for bid submission, the bids open in the presence of the bidders. After the opening of bids, The Ministry of Finance decides on the cut-off price after seeing the bids; the highest competitive bidders receives bills and those who bid successively lower price also receive bills until all available securities have been awarded. Although notionally the size of the auction issue are pre-announced, in practice the cut-off price seems to have been the main decision variable and the amount allocated bore little relation to the pre-announced size. The setting of the cut-off price was influenced by a number of factors, of which Page 4

MONEY MARKET INSTRUMENTS Debt service costs-cost of the factors related to the debt services, e.g. cost for organizing auction etc. • Need for funding-having insufficient funds for regular operations, also influence the cut-off price, that how urgently funds are required. On a number of occasions the authorities decide to reject all bids because when they feel that the bids are unreasonably low.” Information taken from Daniel C Hardy (2001) •

Summary of auction process shown in the figure. Fig: Steps Involve in Auction

SETTLEMENT OF BID “Settlement is normally done through book entry and securities can be issued with in one or two days after finalizing cut-off price. Primary dealers must have to maintain a current account (for cash settlement) with the SBP. The positions of primary dealers are maintained by the SBP in these accounts. The marketable lot-size for MTBs will be in range of PKR 100.0mln - 300.0mln (multiples of PKR 100.0mln).” Information taken from (Naz Chohan 1991)

TAX LIABILITY “Investors in T-bills are subject to a withholding tax, which is adjusted against their final tax rate, because the earnings of T-bills are treated as income of the security holder not the capital gain.” Information taken from (Naz Chohan 1991)

OPEN MARKET OPERATIONS (OMOS)

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MONEY MARKET INSTRUMENTS SBP conducted the first formal open-market operation (OMO) sale of government securities in 1995. Although OMOs were meant to support interest-rate policy, the MOF first used them only as a borrowing vehicle. In Open Market Operations rather sale of securities Government can purchase treasuries back to increase the money supply. When money is invested in treasuries, it is considered to be out of circulation since it is held by the government. When treasuries are purchased by the government, the investor will probably then invest that money in some sort of securities and if the securities are checking accounts, savings accounts, money market accounts, or CDs, that increases the money supply to banks allowing banks to loan more money. This also tends to drive interest rates down both for the depositor as well as the borrower which stimulates the economy. In OMO Government fix the discount rate before the announcing the new securities and can be issued when they need funds.

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MONEY MARKET INSTRUMENTS

COMMERCIAL PAPERnnnnnnnnnnnnnn nn Commercial paper consists of short-term, unsecured promissory notes issued by well-known companies that are financially strong and carry high credit rating. Commercial paper is generally used to meet immediate cash needs. Funds raised from commercial paper are commonly used for current transactions i.e. to purchase inventories, pay taxes and cover other shortterm obligations rather than for capital transactions like long-term investments.SBP and SECP started process of creating commercial paper market in Pakistan in 2003.

MATURITY PERIOD OF COMMERCIAL PAPER The commercial paper shall be issued for maturities between 30 days and one year from the date of subscription. Commercial papers are mainly in the primary market. Opportunities for resale in secondary markets are very limited. Concept taken from Commercial paper http://www.reliancepakistan.com/products/products_tfcs.php

WHO CAN ISSUE COMMERCIAL PAPER Only highly rated companies and financial institutions can issue Commercial Paper, as it is unsecured and investors can only depend upon the creditworthiness of the issuer. Page 7

MONEY MARKET INSTRUMENTS The equity of the company is not less than Rs. 100 million as per the latest audited balance sheet and the company maintains a minimum current ratio of 1: 1 and debt/equity ratio of 60: 40. The company has obtained the credit rating from a rating agency. The minimum credit rating of the issuer shall be “A-” (medium to long-term) and “A2” (short-term). At the

time

of issue

of

commercial paper company rating should not be more then two months old. The company should have no overdue loan or defaults in the Report obtained from the Credit Information Bureau (CIB) of the State Bank of Pakistan (SBP).

SIZE AND DENOMINATION The minimum size of the issue of commercial paper shall not be less than Rs.10 million. The commercial paper, in case of private placement, would be denominated in Rs. 100,000 (face value) or in multiples thereof and in case of offer to general public, may be denominated in Rs. 5,000 or in multiples thereof. Concept taken from Guideline for issuing commercial paper www.secp.gov.pk/corporatelaws/.../Guidelines_CommercialPaper.doc -

MODE OF ISSUE AND DISCOUNT RATE The commercial paper shall be in the form of a promissory note and be issued at such discount to face value as may be determined by the issuer keeping in view the prevailing T-Bill rates, KIBOR and its Credit Rating. Concept taken from viability of commercial paper www.thefinancialdaily.com/viabilityofcommercialpaper-news

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MONEY MARKET INSTRUMENTS

CALCULATION OF RATE OF RETURN ON COMMERCIAL PAPER Most commercial paper is issued at discount from par and Yield to investor can be calculated by bank discount method just like treasury bills. Invester’s yield arises from the price of security between its purchase date and maturity date.

For example; if a million Rs commercial paper with a maturity of 120 days is acquired by an investor at a discount price of Rs. 950,000.the discount rate of return on commercial paper will be DRcp = (Par Value – Purchase Price) / Par Value * 360 / Days to Maturity DRcp = (1,000,000 – 950,000) / 1,000,000 * 360 /120 = 0.15 so,discount rate of return on this commercial paper will be 15%.

Rate of return on commercial paper fluctuate with the daily ebb and flow of supply and demand in marketplace. {Rose, marquis (2005) page 334}

WHO INVESTS IN COMMERCIAL PAPER Commercial paper may be issued by way of Public offer and/or to Scheduled Banks, Financial Institutions etc. Commonly commercial papers are bought by Money market funds as the issue size is often too high for individual investors. Generally regarded as a safe investment and not backed by collaterals

ADVANTAGES FOR INVESTOR Page 9

MONEY MARKET INSTRUMENTS ➢ Due to varying credit standings, investments in commercial papers

may bring in higher yields than time deposits with lower risks. ➢ It is considered to be a safe investment since the financial situation of a company can easily be predicted over a short period. Concept taken from short term Financing through commercial paper by Muhammad haider http://ezinearticles.com/?Short-Term-Financing-Through-CommercialPaper&id=2350465

REPURCHASE (REPO)nnnnnn

AGREEMENT

Repurchase agreements are agreements between a borrower and a lender where the borrower, in effect, sells securities to the lender with the stipulation that the securities will be repurchased on a specified date and at a specified, higher price. The securities serve as collateral for the loan. Most Repo agreements mark the collateral to market daily. If the value of the collateral drops below the required margin, then the borrower must send more securities to the lender to maintain margin or some money to reduce the principal outstanding. Example: we assume a financial institution has Rs 1 million cash surplus. The borrowing dealer and lending company agree on 1 million RP loan collateralized by treasury bills, with the dealer agreeing to buy back the bills within a few days and the interest on loan. Financial Institution

Security Dealer

- Rs. 1 million

+ Rs 1 million

+ Securities worth 1 million million

-

Securities

worth

After Maturity of Agreement + Rs. 1 million

- Rs 1million

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1

MONEY MARKET INSTRUMENTS - Securities worth 1 million Securities worth 1 million

+

MAJOR BORROWERS AND LENDERS Major borrowers include government bond dealers of Treasuries and federal agency securities, and large banks. Government securities are the main collateral for most repos, along with federal agency securities and mortgage-backed securities etc. Active lenders include state and local governments, insurance companies, non-financial corporations, and foreign financial institutions who find the market a convenient, relatively low risky way to invest temporary surplus cash that may be retrieves quickly when the need arises.

CALCULATION OF REPO INTEREST INCOME The difference between the underlying securities current price and repurchase price is the amount of interest paid by the borrower to the lender. Usually the securities pledged behind an Repo are valued at their current market price plus accrued interest on security less a small “haircut” (discount) to reduce the lender’s exposure to market risk. Longer the term and riskier or less liquid the security pledged, larger the “haircut” will be charged. Interest income from repurchase agreement can be determined by this formula RP Interest income = Amount of loan x Current Repo Rate x (Repo Term in days/360 days) For example; an overnight loan of Rs 1 million to a dealer at 12% Repo rate would yield interest income of Rs 333.33. RP Interest income = 1,000,000 x .12 x (1/360) = Rs 333.33 {Rose, marquis (2005) page 293}

TYPES OF REPO (ACCORDING TO MATURITY) Overnight repos Page 11

MONEY MARKET INSTRUMENTS Overnight repos are 1 day loans Term repos Term repos have terms of greater than 1 day—usually weeks to months Open repo Open repo or continuing contracts are a contractual relationship that allows the borrower to borrow funds up to a certain limit, without signing a new contract. However, each party has the right to terminate the contract on a short notice. The interest rate on open repos is slightly higher than on overnight repos.

PURPOSE OF REPO Large banks borrow from dealers and other non-bank institutions through Repo in order to avoid deposit reserve requirements and prohibitations against their paying interest on deposit accounts, while the dealers enter in RPs to borrow at the low cost RP interest rate in order to purchase interest bearing securities. Companies and financial institutions eager to loan its temporary cash surplus to avoid losing even a single day’s interest.

ADVANTAGES OF REPO ➢ The main benefit of Repo to borrowers is that the Repo rate is less than borrowing from a bank. ➢ The main benefit to lenders over other money market instruments is that the maturity of the Repo can be precisely tailored to the lender's needs. Concept taken from Repurchase agreements www.riskglossary.com/repurchaseagreements-html http://www.investopedia.com/terms/r/repurchaseagreement.asp

BANKER’S ACCEPTANCEnnnnnnnn nnnnnn Page 12

MONEY MARKET INSTRUMENTS The literal meaning of the term acceptance is approval. In financial terms acceptance means a vow to pay a definite amount of money. The person who will pay is called as the promissory while the one who will receive is the beneficiary. The document which is the evidence of this promise is called a draft. When this draft tells the promissory to pay the money on a predetermined specified date then this draft is termed as a time draft. The promissory puts his Signature The word accepted on top of his signatures and The date on which the amount will be paid. Now the promissory is legally obliged to pay the amount as mentioned in the draft to the beneficiary because it has been accepted properly by him according to all requirements of official acceptance. If the time draft is formally accepted by a bank then it becomes a banker’s acceptance. In case of a bankers acceptance the initial promissory is obliged to pay the sum of money and the interest money charged before or on the maturity date to the bank while the bank is obliged to pay the money to the beneficiary. The bank becomes the primary obligor. Banker’s acceptance is usually used in trade; mostly for international business but is also frequently used for domestic dealing as well. The maturities of banker’s acceptance mostly range from 30 to 180 days. It allows the international as well as national dealers to trade with each other. As the dealing firms have not met or may even never meet; have a problem of trusting each other. So banker’s acceptance minimizes their risk. The promissory uses the bank’s http://www.eagletraders.com/books/afm/i credit worthiness instead. Hence the m 1 Page 13

MONEY MARKET INSTRUMENTS beneficiary is satisfied. Meanwhile the promissory also gets more time to make the payments.

EXAMPLE TO ILLUSTRATE BANKER’S ACCEPTANCE

THE

MECHANISM

OF

Suppose that you own a software house and you need computers. You order a dealer in Japan to send you ten computers on credit. Now that dealer does not know your credit worthiness. A very easy way to resolve this problem is that you go straight to your bank with which you have a very good past record. There you get a time draft issued on which the date you will pay the money is mentioned. Most probably the date mentioned will be one or two weeks later after getting the shipment. The bank trusts you because of your good credit rating and it signs the draft adds its signature and mentions the date. This draft has now become a banker’s acceptance. The draft is then sent to the manufacturer who is very much satisfied now as he knows the banks credit rating. Concept taken from “Acceptance: Banker's Acceptance, Trade Acceptance” http://www.fraudaid.com/Dictionary-of-Financial-Scam-Terms/Acceptance.htm According to Rose the importer secures a line of credit from his bank and sends the documents to the importer. Now the foreign dealer can draw a time draft against the issuing bank. The exporter goes to his bank which is called the accepting bank. Now this bank gives the importer that specified sum of money and sends the shipment documents and the time draft to the issuing bank. The issuing bank after verifying stamps the word accepted on the draft. By doing this it has become liable to paying that some of money to the bank. The accepting bank is paid that specific sum of money. Concept taken from Rose, Peter & Marquis, Milton. (2005), pg.322-327 So by deploying both of these ways a banker’s acceptance can be created. In essence whenever any bank will agree to pay any importer on behalf of the exporter that document having all these abiding will be termed as the banker’s acceptance. Page 14

MONEY MARKET INSTRUMENTS

SECONDARY ACCEPTANCE

MARKET

FOR

THE

BANKER’S

There is a very strong and affluent market for it. The issuing bank can either keep it in his portfolio or sell the bankers acceptance in the money market. It is sold at a discount from the value which will be payable on maturity. In this way the seller is getting funds from the money market hence it provides liquidity to the seller. BA provides a very low risk interest income to the buyer. They are mostly sold at a spread over t-bills and this rate is referred to as the BA rate. Some banks also purchase the BAs which are nearing their maturity in order to increase their liquidity. Concept taken from “What is a Banker's http://www.mysmp.com/bonds/bankers-acceptance.html

Acceptance

(BA)?”

If the accepting bank which is the primary obligor fails to pay the amount the holder of the BA (assuming the bank has sold the BA in the open market) has recourse back to the issuer of the draft the secondary obligor. The secondary obligor has the unconditional responsibility to pay the acceptance if the primary obligor dishonors it. This characteristic makes the BA; referred to as a two-name paper, a safe investment instrument usually with lower rates than might be available in a direct borrowing. Concept taken from Ira Weissman, “Bankers' acceptance financing--the link to financing global market activity” august 1996 / the CPA journal http://www.nysscpa.org/cpajournal/1996/0896/cpai82f96.htm

The BA’s marketability is limited only by the reputation of the accepting branch and the market demand. The net proceeds after the sale = the face amount of the acceptance the discount rate (interest rate*days into maturity*face amount) + the bank’s acceptance commission. The combination of these is called the “all in” rate.

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MONEY MARKET INSTRUMENTS BA financing may be used by exporters, importers, domestic buyers and sellers, traders, shippers, manufacturers, processors, distributors, or almost anyone involved in international or domestic trade. Concept taken from Michael Dennis “Bankers’ acceptance When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. (See also Draft, Drawee.) financing” http://www.encyclopediaofcredit.com/WebHelp/financing_methods/banker s_accpt.htm

EURODOLLAR nnnnnnnnnnnnn

DEPOSITS

Eurodollars are the leading component of the Eurocurrency markets today. There is a need for Eurocurrency markets because funds are required in international currencies worldwide mainly in Dollars, Euros and Pounds. Eurodollars are the deposits of US dollars in banks which are located outside United States. These can also be the branches of the US banks located outside US. The deposits are recorded in the denomination of dollars rather than their home currency. Generally, the "euro" prefix can be used to indicate any currency held in a country where it is not the official currency. These deposits are loaned to the home offices of the banks in US, lent to business enterprises that have to make their payments in dollars. It can be retained as well to meet the reserve requirements and to maintain liquidity. These can be lent to government if it needs dollars and to private investors as well. The Eurodollar deposits are always moving in the form of loans.

MECHANISM OF EURODOLLAR DEPOSITS We suppose that you own a textile firm in Pakistan. To keep the example simple we assume that you shipped an assignment worth one million to the American importer. Here we also suppose that you have an account in an American bank as well. The importer pays the bills in dollars and deposits it in your account held at the American bank. After all these transactions a Eurodollar deposit has not been created. If we further mature the same example and presume that you transfer that one million dollars in your bank in Pakistan then the deposit that is Page 16

MONEY MARKET INSTRUMENTS now created in Pakistan is a Eurodollar deposit. As it is a dollar account maintained outside US. The dollar amount in the Pakistani account can be given as a loan to an investor who is liable to pay the money in dollars. In all these transactions this fact should be acknowledged that the amount of dollars was merely transferred in between the banks but the original dollar amount remained the same. Eurodollar activity did not alter the total reserves of the US banking system. The chain of Eurocurrency and Eurodollars will remain functioning until they are in demand and funds are being deposited in the international banking system. The Eurocurrency accounts are formed by giving out loans and are destroyed when the loan is repaid. Hence they did not create money but they act as an efficient distributor of liquidity. Eurocurrency deposits are usually held from one day till one year so they are pure money market instruments. Many are held for one month that is the usual time period for the shipment of goods. They are mostly interbank liabilities when loaned so a fixed interest rate is charged on them. There is no central location for the trading of the Eurocurrency deposits. They move rapidly from one bank to another to meet the liquidity requirements of corporations, governments and Eurobanks themselves. Eurocurrencies are not without risk. They are volatile and sensitive to fluctuations in interest rates and currency values. Difference of interest rate or value between two countries can initiate the massive flow of funds from one to another. There is a political risk as well that the governments might restrict the flow of money across borders. The daily cost of funds derived from Eurodollars is Amount to be loaned * interest rate * 1/360 Text adapted from Rose, Peter & Marquis, Milton. (2005), pg. 316-322

FEDERAL FUNDSnnnnnnnnnnnnnnnnnnnn Federal funds refer to the overnight borrowings which are undertaken in order to meet the state bank’s reserve requirements. These are transferred from the lending institution’s account to the borrowers account. The funds are not physically transferred. When they are repaid then an entry in books satisfies the whole loan. The most important borrower in the federal funds market is the commercial banks. Other financial Page 17

MONEY MARKET INSTRUMENTS institutions, security dealers, business corporations and the local government provide readily available funds for lending in the federal market. The banks and DFIs are legally obliged to keep a certain amount of funds in the reserve account which is kept with the state bank of Pakistan. This is equal to the fraction of the deposits which are kept with a bank. To meet the requirement of this legal reserve ratio the banks borrow funds mostly on overnight basis from the federal funds market. Most federal funds are for overnight basis and they have a fixed interest rate. Today the online system has made it very easy to know that which institutions are short of funds and which have surplus. The one who is short gets the benefit that its immediate requirement of money is fulfilled while the one with surplus gets interest income on its funds and thus earns it through the federal fund market. The interest rates which are levied on these funds highly fluctuate daily. It depends on the volume of funds which is surplus in the market and the volume of fund needed by the market. Text adapted from Rose, Peter & Marquis, Milton. (2005), pg. 307-310

REFERENCESnnnnnnnnnnnnnn nnnnnnnn “Acceptance: Banker's Acceptance, Trade http://www.fraudaid.com/Dictionary-of-Financial-ScamTerms/Acceptance.htm (Accessed 28th Oct, 2009)

Acceptance”

Daniel C Hardy (2001) (pg. 29-30); The Pakistan Development Review. Profitability and Pricing in Treasury Bill Auctions: Evidence from Pakistan (Accessed October 28,2009)

http://ezinearticles.com/?Short-Term-Financing-Through-CommercialPaper&id=235046 (Accessed October 20, 2009) Page 18

MONEY MARKET INSTRUMENTS

http://www.investopedia.com/terms/r/repurchaseagreement.asp (Accessed October 28, 2009)

Ira Weissman, “Bankers' acceptance financing--the link to financing global market activity” august 1996 / the CPA journal http://www.nysscpa.org/cpajournal/1996/0896/cpai82f96.htm (Accessed 31st Oct, 2009)

Michael Dennis “Bankers’ acceptance When a drawee acknowledges in writing on the face of the draft that the buyer will pay the draft at maturity. (See also Draft, Drawee.) financing” http://www.encyclopediaofcredit.com/WebHelp/financing_methods/banker s_accpt.htm (Accessed 28th October, 2009)

http://www.reliancepakistan.com/products/products_tfcs.php (Accessed October 19, 2009) www.riskglossary.com/repurchaseagreements-html (Accessed October 27, 2009) Naz Chohan (1991) (pg. 406-409);Mortgage-Backed Securities Markets in Asia. http://www.adb.org. (Accessed October 28, 2009). Rose, Peter & Marquis, Milton. (2005), Money and Capital markets: Financial institutions and instruments in a global marketplace. McGrawHill/Irwin www.secp.gov.pk/corporatelaws/.../Guidelines_CommercialPaper.doc (Accessed October 19, 2009)

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MONEY MARKET INSTRUMENTS www.thefinancialdaily.com/viabilityofcommercialpaper-news (Accessed October 20, 2009)

“What is a Banker's Acceptance (BA)?” http://www.mysmp.com/bonds/bankers-acceptance.html (Accessed 28th Oct, 2009)

What is a Treasury Bill. http://www.wisegeek.com/what-is-a-treasurybill.htm) (Accessed October 29, 2009).

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