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Brexit: Big Deal, or Not?

1 min read

As seismic events go, Brexit ranks right up there. It was unpredicted, and its disruptive influence quickly radiated out from its London epicenter. As the news spread, commentary from a sea of pundits flooded the market with various macro views of the potential damage Great Britain’s exit from the Euro zone would cause. While many of these reports are interesting, those of us in institutional cash management live in a relatively narrow world where our concerns focus on what it all means to cash exposures, liquidity and the impact on risks and opportunities. For us, Brexit could not have happened at a more interesting time.

Money fund reform is less than four months away, and as we saw in the results from our annual liquidity survey webinar last week, many treasurers are positioning to sidestep prime money fund reform by temporarily parking their prime money fund balances into Treasury funds while they take their time evaluating new options. So in a way, the new landscape is emerging in Europe at a good time for cash investors. Dollars are already shifting to conservative liquid, albeit low-yielding, options. As treasurers evaluate redeployment over the next year or so, they can now factor the impact of Brexit into their decisions.

To help with this emerging challenge, a new Capital Advisors Group research report—Brexit: What Happens Next and How It Impacts Institutional Cash Investors—focuses on the specific impact Brexit may have on cash investments and how cash investors can successfully navigate options going forward. From credit implications to monetary policy, the closer you get to London, the more you will feel the effects of Brexit.

DOWNLOAD FULL REPORT

Best Regards,

Ben Campbell
President & CEO

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