Intraday Deposits...

KenChakahwata · January 15th, 2005, 5:40 pm

Apparenly these deposits mature on the same day, i.e time to maturity is 0 days. however they pay interest as usual -- and this is calculated as if its a one day instrument.Could someone please point me to where i can read some more background about intraday depos, how they work, and how they are 'valued', etc. typical terms and conditions sheet or any papers written about this would be a great starting point. my initial though was ti accrue interest in hours, but not sure this is what happens in practice.Grateful for any pointers.RegardsKen

exotiq · January 16th, 2005, 7:18 pm

I've seen some FX desks accrue interest by the second, which seems to make sense.

KenChakahwata · January 17th, 2005, 8:35 am

many thanks exotiq ... yes, would make sense to accrue interest more granularly in this case. i would like to know how common this is -- some written material on this would be useful for me at this point. anyone?? any relationships with 'intraday repo'?enjoyken