Industry Analysis & Industry Trends
Given the highly globalised nature of the money market system, the Money Market Dealers industry in Australia was 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 funds. This has increased the cost of funding and, as a result, profitability and revenue have suffered. The decline in revenue has not been as severe as that in profit, as funds have poured into less risky assets... purchase to read more
Industry Report - Industry Investment Chapter
Money market dealers in Australia employ educated and experienced staff that require a compensation over and above average wages. Investments in capital equipment are low, as money market dealers occupy one centrally located offices. The need for branch networks is non-existent. Although a significant amount is invested in technology, this constitutes a insignificant share of total revenue.
IBISWorld analysis shows that the Money Market Dealers industry has a low level of capital intensity. The capital investment requirement is determined by the level of depreciation in this industry, estimated to account for 0.4% of industry revenue. While, the labour investment requirement is represented by the industry's wage expense, estimated to account for 7.5% of industry revenue... purchase to read more