Maintaining Liquidity with a Separately Managed Account

1 min read

Money market funds and bank deposits have been traditional sources of liquidity for corporations. However, the unlimited FDIC guarantee on non-interest bearing deposits expired more than a year ago and money market funds have come under scrutiny from both investors and regulators. With the SEC scheduled to announce its final regulatory changes this year, which may include floating NAVs and/or liquidity fees and gates, now may be an appropriate time for Treasurers to reacquaint themselves with the liquidity characteristics of separately managed accounts (SMAs).

For more than 20 years, we have been constructing portfolios with carefully planned maturity structure designed to meet the operating and investment cash needs of our clients. In this month’s research paper, we examine how diversified separately managed accounts may satisfy a Treasurer’s liquidity needs, while providing a higher rate of return with lower credit risk than either bank deposits or money market funds.

DOWNLOAD FULL REPORT

Best Regards,

Ben Campbell
President & CEO

Please click here for disclosure information: Our research is for personal, non-commercial use only. You may not copy, distribute or modify content contained on this Website without prior written authorization from Capital Advisors Group. By viewing this Website and/or downloading its content, you agree to the Terms of Use & Privacy Policy.

Similar Posts

Taking Stock of Japanese Megabanks’ Credit Profiles in Volatile Markets

Taking Stock of Japanese Megabanks’ Credit Profiles in Volatile Markets

Investment Management

4 min read4 min readRecent market turmoil, triggered by the Bank of Japan’s interest rate hike and disappointing US jobs data, has resulted in a sell-off in Japanese megabanks’ stocks. Cash and short-duration bond investors may be wondering if they should worry about these banks’ credit profiles. Here is a balanced analysis to help them make an…

converence table with Capital Advisors Group experts

Registered Investment Advisors vs. Broker-Dealers: Who Should You Work With?

Investment Management

7 min read7 min read Registered Investment Advisors (RIAs) vs. Broker-Dealers (B-Ds): An Overview The services of a registered investment advisor or a broker-dealer should be considered if you are seeking to establish a separately managed account for your institutional cash investments. RIAs that are regulated by the U.S. Securities and Exchange Commission (SEC) have a legal…

dice that all have a single percentage character instead of dots

Putting Cash to Work

Investment Management

11 min read11 min readIntroduction: Higher Rates are Coming to An End Recent comments by Federal Reserve officials indicate that monetary policymakers may soon start lowering short-term rates as inflation and employment data continue to moderate. This shift comes after a period of keeping interest rates more elevated than initially thought. Meanwhile, stockpiles of cash from Covid-era…

Republic First Bank Resolution: Minimal Disruption Expected

Republic First Bank Resolution: Minimal Disruption Expected

Investment Management

2 min read2 min readOn Friday afternoon, the FDIC took the failed Republic First Bank into receivership and the majority of the bank’s assets and liabilities were sold to Fulton Bank on the same day. We do not expect this bank failure to create systemwide turmoil similar to what we experienced in March of 2023 due to…

Negative Rates are No More, But The Era of Big Central Banks Reigns Supreme

Negative Rates are No More, But The Era of Big Central Banks Reigns Supreme

Investment Management

7 min read7 min readIntroduction The Bank of Japan’s (BOJ) meeting last month was perhaps the most consequential central bank meeting of the entire year. The BOJ raised interest rates by 10 bps  to 0-0.10%, all-in-all a small amount in magnitude.  However, this marked the first interest rate increase by the central bank in 17 years. Moreover,…