Media – Blog

Introduction How long does it take for “green shoots” to grow into a “soft patch”? For the U.S. economy, it has taken a little more than two years. In his famous 60 Minutes interview on March 15, 2009, Federal Reserve Chairman Ben Bernanke popularized the phrase “green shoots” to describe
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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 is the venture debt consulting arm of Capital Advisors Group, which helps venture‐backed companies determine their optimum capital structure, identify appropriate lenders,
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In May, Capital Advisors Group was invited to the Securities and Exchange Commission’s headquarters in Washington, D.C. to participate in a roundtable discussion on money market fund risk and to help consider potential policy changes for money market funds (the archived webcast can be found here). After years of publishing
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“Change is the law of life. And those who look only to the past or present are certain to miss the future.”  — John F. Kennedy Abstract Collateralized commercial paper (CCP) made its debut last November to institutional cash investors. This new structure allows investors to purchase commercial paper from
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Reflecting back on the 20 years since Capital Advisors Group was founded, I am amused by the numerous security types that have been created for corporate treasurers and short-term cash portfolios. These new security types, and our ensuing risk evaluation of these securities, have been part of the challenge and
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Abstract Recent events related to government sponsored enterprise (GSE) reform have prompted short-duration investors to question the level and nature of government support for their debt issuance after December 31, 2012. The housing GSEs play a critical role in the U.S. mortgage market, representing 99% of all new mortgage-backed securities
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It’s human nature to generalize with broad strokes; one bad apple can spoil the whole bunch, as the saying goes. Our industry is filled with generalizations, from panning all insurance companies even when Berkshire Hathaway shines as a pillar of credit strength, to running from all Euro credits even when
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Abstract Credit risks in prime money market funds stem from investments in non-government securities. In reviewing credit concentrations in a group of AAA-rated prime funds representing 50% of industry prime fund assets, we found that fund managers improved credit and liquidity positions by boosting investments in U.S. Treasuries and repurchase
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Recent Federal Reserve communication has set the stage for additional quantitative easing in November. Not so long ago, “Fed speak” was centered on future steps that the Fed may take to gradually remove stimulus. However, this recent shift in communication has pivoted around a deceleration in growth and declining inflation
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Introduction With just two days remaining until the Federal Reserve Board’s key policy meeting, it is almost impossible to avoid the term “quantitative easing round two (QE2)” in the financial press. Ever since the keynote speech by Fed Chairman Ben Bernanke last August , rumors have been rampant that the
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