Media – Blog
March 1, 2012
Abstract Recent negative bank ratings actions foretell a secular trend that capital markets-oriented banks are slipping toward the lower tier of investment-grade categories. We believe these ratings downgrades are more than a temporary phenomenon that is easily reversible. While the near-term effect on corporate treasury portfolios will likely be manageable,
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March 1, 2012
February ushered in a sea of potential changes for corporate cash managers. Early in the month, The Wall Street Journal reported on a pending proposal by the SEC to stabilize money market funds through additional regulations. Later in the month, Moody’s Investors Service announced a total of 120 banking credits
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February 1, 2012
Abstract Recent developments in corporate cash investments resulted in portfolios of different risk characteristics having little yield differentiation. Popular cash vehicles, including prime money market funds, FDIC-insured transactional accounts and all-Treasury portfolios, require a fresh look in this new environment. Improving a portfolio’s risk/reward profile may involve diversification among cash
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February 1, 2012
Portfolio examinations are typical activities for this time of year as year-end audits get underway. What may come as a surprise, however, is the additional scrutiny on valuation methodology that auditors are requesting. Supporting our clients for this additional scrutiny reminds us of the benefits that may be achieved through
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December 1, 2011
As a business looks for strategic opportunities to deploy its cash, maintaining liquidity in its cash investment accounts is crucial. Money market funds have been the traditional answer to liquidity, but their engineered liquidity has come under scrutiny from both investors and regulators alike. Potential regulatory changes announced by the
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October 3, 2011
Abstract The almost comical sounding term “Operation Twist” has been creeping into the financial media since last December as Federal Reserve officials and market commentators discussed innovative ways to revive the stagnant economy. This phrase became a household name on September 21st, when the Federal Open Market Committee (FOMC) decided
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October 3, 2011
Against a backdrop of declining US growth projections, all eyes were on the Fed last week as they considered new policy initiatives designed to impact the cost of borrowing. Under consideration was the QE3 balance sheet expansion, as well as more politically palatable options, such as reducing the interest rates
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September 7, 2011
Note: Capital Advisors Group is a Boston‐based institutional investment advisor that has been helping venture‐backed companies invest their cash assets for more than 20 years. Debt Advisors Group, the venture debt consulting arm of Capital Advisors Group, helps venture‐backed companies determine their optimum capital structure, identify appropriate lenders, source term
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September 1, 2011
Abstract Treasury rates may remain at zero or negative levels for a prolonged period and additional banks may begin to charge “extraordinary deposits” fees, pushing depositors back into the money markets. It just may be a matter of time before many, if not most, treasurers are confronted with negative portfolio
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August 1, 2011
Greek debt crisis…Spanish banks…U.S. debt ceiling impasses…July certainly had its share of rollercoaster news for the markets to digest. As an investment manager of corporate cash, we focus on how our buy list of securities should be adjusted given the backdrop of these types of developments. While much of this
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