Media – Blog
February 1, 2013
Capturing and evaluating risk is a growing mantra for treasurers, not only for cash investments, but across the enterprise, as well. These investors, along with regulators, have demanded more timely investment disclosures to help support their investment allocations. No investment class has made more progress on this front than money
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February 1, 2013
Executive Summary We believe that mandatory disclosure of daily market value NAVs will be a significant step toward better risk transparency in money market funds. It is functionally equivalent to the FSOC/SEC’s floating NAV proposal without the unnecessary operational, accounting and tax complexities. When applied along with objective liquidity gates
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December 3, 2012
Abstract Deposits at the 20 largest U.S. banks are generally concentrated in banks with Tier 2 ratings, many of which are just one step away from BBB status. Significant cross-concentration of bank names also exists in large prime money market funds. The dominance of bank exposure in corporate portfolios through
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November 1, 2012
Abstract The expiration of transaction account guarantees requires actions from treasury cash managers. While essentially all of the $2.0 trillion growth in domestic deposits since 2007 went to the 20 largest banks, the banks’ deposit credit strength declined by almost three ratings notches over the same period. Although 13 of
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September 4, 2012
Introduction Since late 2008, when the $3.5 trillion money fund industry was left reeling in the wake of the Reserve Primary money market fund’s failure, a number of regulators have warned against systemic risks that institutional money market funds still pose to the financial system. In September 2008, as the
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August 1, 2012
Abstract The challenging environment for treasury cash investments has prompted many practitioners to look for alternative options in managing their excess cash. We address this topic in a generalized manner, summarizing three major categories of available cash investment vehicles: deposits, pooled assets and direct purchases. The pros and cons of
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June 28, 2012
Introduction Following the collapse of Lehman Brothers in 2008, the rapidly deteriorating economic environment in the U.S. and abroad caused most treasurers to reevaluate their cash investment strategies, with a specific focus on restricting investments in certain asset types. Some companies implemented these restrictions by changing their investment guidelines, while
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June 5, 2012
Survey goal To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices. Summary of 2012 Survey Treasurer's Mindset: "Cautious, but Ready to Act" Context: FDIC insurance changes Pending Money Market Fund Regulations (5%, Floating, NAV, Capitalization) Select Highlights: Debt: Additional diversification Increased
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June 1, 2012
In May, several Treasury conferences from Oregon to Massachusetts had well-attended sessions on investment policy design and construction. This interest may have been sparked by upcoming regulatory changes affecting bank deposits and money market funds, as the risk/reward nature of these investments is under review and likely to change. A
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March 15, 2012
Note: Capital Advisors Group is a Boston-based institutional investment advisor that has been helping clients invest their cash assets for more than 20 years. Debt Advisors Group, the venture debt consulting arm of Capital Advisors Group, helps our clients determine their optimum capital structure, identify appropriate lenders, source term sheets
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