Markets – Charlie Piermarini

Charlie Piermarini is a retired financial executive with decades of experience in e-commerce and capital markets. He served as the executive managing director at BMO Capital Markets in Chicago, Illinois. As the executive managing director, Charles “Charlie” Piermarini was responsible for global fixed income and money market sales.

A money market fund is a type of fixed income mutual fund that invests majorly in cash and securities equivalent to cash. It invests in debt securities characterized by minimal credit risk and short maturities. A money market mutual fund has low volatility and the income generated can either be tax-free or taxable depending on the securities.

Money market funds mostly invest in U.S Treasuries, certificates of deposit, commercial paper, repurchase agreements, and bankers’ acceptances. According to the rules Securities and Exchange Commission, a money market fund portfolio must have a weighted average maturity of 60 days or less. Money market funds issue shares to investors under the guidelines set by the Securities and Exchange Commission.

A retired Chicago financial professional whose industry experience spans over four decades, Charles “Charlie” Piermarini held top profile positions including his last position before retirement at BMO Capital Markets where he served as the executive managing director. Charlie Piermarini’s responsibilities included overseeing money market sales and trading, global fixed income, and debt capital markets.

A debt capital market is a market whereby both companies and governments seek to raise funds through the trading of debt securities, such as government bonds, corporate bonds, and credit default swaps. Debt capital markets in the United States are regulated by the Securities Exchange Commission (SEC).

Debt capital market professionals generally provide expert advice and recommendations to companies and agencies that want to raise debt. Raising debt is a process whereby a business entity borrows funds and subsequently pays interest on those funds as opposed to equity where a business sells off part of its percentage ownership and doesn’t pay any interest.

Debt capital allows companies to access long-term capital at lower rates and funds obtained can be utilized for restructuring current debt, refinancing, or facilitating a potential merger with another company. DCMs are vital because they determine the level of interest rates. Higher interest rates mean lower consumer borrowing and spending thus less investment. On the other hand, lower interest rates increase consumer borrowing and spending as consumers have confidence in the economy.

Category: Markets

What Is a Money Market Fund?

Debt Capital Markets Defined