Short Term Debt Funds aim to provide superior liquidity and safety of the principal amount in the Investments, it does this by keeping interest rate and credit risk low by investing in very liquid, short maturity fixed income securities of highest credit quality
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Short-term debt, also called current liabilities, is a firm’s financial obligations that are expected to be paid off within a year
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Common types of short-term debt include short-term bank loans, accounts payable, wages, lease payments, and income taxes payable
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The most common measure of short-term liquidity is the quick ratio which is integral in determining a company’s credit rating