This lesson provides an overview of the financial markets and the key instruments available to treasury professionals for investing and funding.

4.1 Overview of Financial Markets
Students learn to distinguish between different markets: Money markets (short-term debt), fixed income markets (long-term debt), and equity markets (ownership shares) . They explore the properties and uses of these instruments in a treasury context.

4.2 Short-Term Investment and Borrowing
Treasury uses money market instruments to manage liquidity. This includes the use of commercial paper and certificates of deposit for investment, and bank loans or lines of credit for short-term borrowing .

4.3 Derivative and Structured Products
The course covers derivative instruments like forwards, futures, and options, explaining their properties and use in managing financial risk . Structured products are also introduced as complex financial instruments that combine different asset classes.

4.4 Cash Investment Assessment
Techniques for evaluating cash investments are critical to achieving the goal of maximising returns on surplus funds while maintaining safety and liquidity