Money Market Magic

The markets: This section explores the federal funds market, the market where the Federal Reserve sets interest rates. Also covered are the massive repo and reverse markets, markets that finance Wall Street's leveraged trading.

The section covers government and federal agency securities, doing so in depth with over 100 pages of coverage. Financial futures are looked at in great detail, providing detail to help anyone interested in trading futures as well as information for others who can benefit from the large amount of market intelligence available in the futures markets. The section on financial options is extremely relevant to anyone seeking to learn more about the options.

There is also detailed coverage of the eurodollar market, a market now exerting substantial influence on markets worldwide. This can be seen in the U.S. Treasury market, where the recent inversion of the Treasury yield curve has been pinned in part on the flow of capital from countries such as China and Japan, which hold vast supplies of dollars. This section also covers the vast interest rate swap market, certificates of deposit, bankers' acceptance, commercial paper, loan participations, medium-term notes, money market funds and municipal notes.

A lengthy book, Stigum's Money Market is meant to serve as a reference guide to answer multitudes of questions. The hundreds of new illustrations and a summary at the end of each chapter help readers gain a quick understanding of the book without having to read it cover to cover.

I spent a great deal of time digging through mounds of the best research I could find from institutions such as the Federal Reserve and the Bank for International Settlements to find illustrations that would quickly explain complex topics, ever mindful that we live in a world where people want information fast and where attention spans are shorter than they once were.

Stigum's Money Market has been empowering investors for almost 30 years, because its readers have astutely recognized the powerful role that the money market plays in the behavior of the economy and markets, knowing full well that this investment classic is the best source of tools an investor needs to succeed.