A security that has characteristics similar to cash, particularly in terms of its liquidity and connection with changes in market rates and conditions. As the name implies, such a security is not cash, but has features bringing it so close to cash. The value of such a security is established or determined directly by the markets.
Examples of cash-like securities or instruments include checks, commercial papers, drafts and other instruments or instructions for payment of money (broadly, money market vehicles), and marketable securities such as investment-grade bonds and, short-term and ultra short term treasury bills (issued by trustworthy governments).
Cash-like securities are mainly fixed-income securities with maturities of less than 91 days and investment-grade credit rating.
