DMADF deep dive
About this course
Government-backed deposits via the DMO. Sovereign-grade safety, simple operations, the right use cases. Onboarding and daily operations covered.
What you'll learn
- What is DMADF?
- When to use it
- Rate structure
- Onboarding & operations
Part of these pathways
Related courses
- SONIA Forward Curve & OIS
- Money Market Funds (CNAV / LVNAV / VNAV)
- Short-duration bond funds & VNAVs
- Intra-LA borrowing & lending markets
- Term deposits, CDs & T-Bills
- Gilts as treasury investment
Common questions
What is Bank Rate?
Bank of England policy rate. DMADF rates are typically 25bps below Bank Rate (overnight) or close to T-Bill yields (term).
What is DMADF?
Debt Management Account Deposit Facility. The UK Debt Management Office's deposit facility, available exclusively to UK local authorities and a small number of other public bodies.
What is DMADF term rate?
Rate offered by DMADF for fixed-tenor deposits (typically 1m to 6m). Set close to T-Bill yields at equivalent maturity.
What is DMO?
Debt Management Office. UK Treasury's executive agency that issues gilts and operates DMADF.
What is Overnight rate?
DMADF's overnight deposit rate, typically Bank Rate minus 25bps. Consistently below SONIA but with sovereign credit.
What is Registered LA?
An LA registered to use DMADF, with a Customer Information Form on file. Onboarding is straightforward but takes a few weeks.