Given the highly globalised nature of the money market system, the Money Market Dealers industry in Australia has been severely affected by the global financial crisis. Money market dealers operate primarily in wholesale markets, borrowing from, and lending to, large corporations and governments. Through the repricing of risk and the downgrading of corporate credit ratings, lending activity has drastically declined as savers and investors have been reluctant to lend their funds. In turn, this has increased the cost of funding. As a result, profitability and revenue have suffered.
This industry consists of businesses that are involved in holding and dealing securities issued by the Government. They participate in the short term money market, and deal with other liquid placements. In the main, the Money Market Dealers industry buys and sells short term debt, such as bank bills and negotiable certificates of deposit, where establishments generate interest revenue from holding these short term assets.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.