Money market analysts sometimes called “financial analysts” study the financial holdings in various money market investments. The term “money market” refers to a group of securities that are all considered to be short-term. In order to be considered short-term they must be scheduled to mature in a year or less. Some of the typical types of securities that make up money markets include CDs (or “certificates of deposit”) treasury bills and mortgages. When a person or a business wants to invest in short-term and relatively risk-free securities they often choose to invest in money markets. Those who invest in money markets earn a relatively low interest rate from the investment. Money market analysts must be able to understand money market investments in the context of the overall interest rate environment and to make judgments as to whether or not they would make a good component of a money market investment portfolio. In general however money market investments are conservative offering minimal interest in exchange for relative safety as far as return of principal. However with the exception of bank certificates of deposit the Federal Deposit Insurance Corporation (FDIC) does not insure individual money market investments or money market mutual funds. Thus it is crucial for money market analysts to research and evaluate each debt security to determine what level of risk it represents for money managers or individual investors based on the ability of the company or government to pay its debts when they are due. Aspiring money market analysts need at least a bachelor’s degree in a field such as finance accounting statistics or economics. However many jobs require a master’s degree in finance or a Master of Business Administration (MBA). The employment outlook for this career is positive but competition is stiff for the higher paying jobs. The website www.bls.gov reports that the salaries vary widely depending on employer experience and credentials. However the median annual wages are approximately $73000 but this may include performance bonuses.
|Education Required:||Bachelor's Degree|
|Tasks:||Examines financial information.
Suggests where money should be invested.
Assess the performance of short-term, low-risk securities.
Focuses on certificates of deposit, Treasury bills, commercial paper, and mortgages.
|Also Called:||Financial Analyst