Intra-LA borrowing & lending markets
About this course
The LA-to-LA money market - brokers, direct deals, why rates often beat MMFs and DMADF. Live activity tracker, broker comparison, deal-confirm template.
What you'll learn
- What the market is
- Where rates clear
- Trade workflow
- Credit & TMSS
- Tactical use
Part of these pathways
Related courses
- SONIA Forward Curve & OIS
- Money Market Funds (CNAV / LVNAV / VNAV)
- Short-duration bond funds & VNAVs
- DMADF deep dive
- Term deposits, CDs & T-Bills
- Gilts as treasury investment
Common questions
What is Borrowing LA?
An LA borrowing short-term to bridge a cash gap. Pays the rate plus brokerage. Generally cheaper than the equivalent PWLB or commercial overdraft.
What is ICMA / NIPA conventions?
Industry conventions for short-term sterling money market deals — actual/365 day count, T+0 or T+1 settlement, value-date interest accrual. The intra-LA market follows these conventions throughout.
What is Intra-LA market?
The market for short-term sterling borrowing and lending between UK local authorities. Predominantly tenors of overnight to 12 months, brokered through specialist money-market broker desks (BGC, Tradition, Tullett Prebon, R.P. Martin, ICAP). Together with DMADF and MMFs, it makes up the LA-specific money market.
What is LA money-market broker?
Specialist broker desks that match LA borrowers and lenders. They quote bid/ask rates, take orders, and confirm trades. They don't take principal — they're intermediaries. Brokerage is paid by the borrower (typically 1bp on the principal × tenor).
What is Lending LA?
An LA placing surplus cash with another LA. Effectively earning a rate close to SONIA + 5–15bps with a UK local authority counterparty (statutorily backed).
What is Rates screen / quote sheet?
Daily indicative rates published by LA money-market brokers. Show bid (rate paid for cash in) and offer (rate paid for cash out) by tenor. Published electronically each morning; act as the visible reference for LA-to-LA dealing.