Sturt and Short-term Interest Rate Trading Explained

Sturt, short for short-term interest rate trading, involves borrowing money at a low interest rate and lending it back at a higher interest rate. This type of trading focuses on short-term loans, usually up to one to two years, with a significant portion being one-day loans. Corporations can either borrow money for an extended period from banks or engage in daily borrowing of money. Sturt trading is a high-volume, practical business, closely related to predicting future interest rates set by organizations like the Fed or the Bank of England.

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