Media – Blog
December 1, 2015
As we approach the first rate hike cycle in almost a decade, it makes sense for cash investors to take stock of the state of the economy, as well as the Fed’s view of it. The pace at which the Fed raises interest rates will be important to anyone managing
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November 1, 2015
October brought a string of articles in the Wall Street Journal and other financial publications highlighting the impact money market fund reform and liquidity coverage ratios may have on corporate cash investments. The gist of these articles was that after years of little environmental change, treasurers are now faced with
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August 19, 2015
A supply shortage of investments suitable for short-term corporate cash management is looming, exacerbated by new Dodd-Frank and Basel III banking regulations and upcoming money market fund reforms. As bank deposits and money funds become less available and less attractive, treasury professionals will be considering other investment-grade securities. However, they
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August 5, 2015
Money market fund reforms, new banking regulations, and the prospect of rising interest rates are motivating a top-to-bottom restructuring of many corporate cash portfolios in 2015 and 2016. As corporate treasurers strike a new balance of bank deposits, reconstituted institutional money market funds, and separately managed portfolios of directly purchased
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August 1, 2015
As strategies to deal with money fund reform move to the forefront for many treasurers, the landscape for money fund alternatives has evolved significantly. One of the largest factors impacting alternate investment strategies has been the supply contraction of high-grade securities rated AA or higher. Gone are the days when
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July 1, 2015
Among the most interesting statistics in the 2015 AFP Liquidity Survey from the Association for Financial Professionals (AFP) is that 52 percent of corporate treasurers are considering use of separately managed accounts (SMAs) as a response to the 2016 reforms that will change the nature of institutional money market funds.
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April 1, 2015
With sweeping changes coming to short term cash markets, along with a likely Fed policy shift, now is the time for a bottom-up reevaluation of cash investment strategies. Regulatory changes are altering the risk-reward relationship of the most staid solutions in cash markets, as old products are reinvented and new
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January 2, 2015
As we transition into a new year, I reflect on 2014 as a year of steady but slow economic progress. Continued improvements in the labor markets moved the U.S. closer to the self-sustaining economy the Fed is targeting. Quantitative easing ended quietly while the U.S. equity markets continued their march
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August 1, 2014
The SEC’s announcement last week that institutional prime money market funds will soon incorporate floating NAVs, along with potential fees and gates on liquidity during times of stress, ends nearly five years of discordant regulatory deliberations. During that time, Capital Advisors Group has been active in the assessment of money
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May 1, 2014
Abstract The Johnson-Crapo bill represents another concrete step towards the resolution of the future of Fannie Mae and Freddie Mac and one that will further reduce the supply of government agency debt. This presents a serious challenge to the management of cash portfolios due to the core holdings status of
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