Media – Whitepapers
September 2, 2014
Abstract This research commentary discusses liquidity in the context of corporate cash portfolios, coming challenges in the post-crisis era, why liquidity reversal may be a systemic concern, and how investors should prepare for the new liquidity equilibrium in a normalized interest rate environment. Our suggestions for corporate cash professionals include
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August 1, 2014
Abstract Greater vigilance is required of today’s treasury investment professionals. Neither bank deposits nor money market funds may be appropriate in the post-crisis, post-regulatory environment. As yields start to rise, cash investment strategy decisions that may have been delayed will require serious consideration. Direct purchases in separately managed accounts may
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July 1, 2014
Note: For the purposes of this paper, we will define “healthcare” as life sciences/biotech, medical devices, diagnostics and health tech. Capital Advisors Group is a Boston area-based institutional investment advisor that has been helping venture-backed companies invest their cash assets for more than 22 years. Its debt finance consulting division
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June 2, 2014
Survey goal To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices. What we’ve learned in 2014 Treasury and financial professionals appear to have begun to control bank exposures Decrease in bank deposits Firms seem to have increased the pace at
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June 1, 2014
CFOs, treasurers, analysts, and other financial management decision-makers have made in-roads in mitigating risk by increasing restrictions on which banks can hold their uninsured deposits and updating their investment policies frequently. But despite progress in both understanding and managing counterparty risk, many organizations still do not appear to have formal
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April 1, 2014
Abstract Make whole calls caused little investor concern until the low yield environment resulted in unexpected losses. Make whole provisions fail to protect short-term investors when bond spreads fall below make whole levels. Yield volatility in Treasury securities complicates matters and increases risk for cash investors. Make whole bonds are
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January 1, 2014
As 2013 closes and we pen our annual “Three Challenges in the Coming Year” research paper, I thought that a self-evaluation of our previous year’s views would make for an interesting exercise. Last year at this time, we cited acceleration in money fund reform, scarcity of eligible investments and the
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December 2, 2013
Abstract In this research commentary, we offer a behind the scenes look at the credit approval process for cash investment portfolios. We discuss nine essential components to help clarify a process that can sometimes seem mysterious and intimidating. Beyond Ratings – What Makes Cash Unique The Credit Universe – It’s
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November 1, 2013
Abstract The Federal Reserve introduced the new reverse repo facility to control the level and volatility of short-term interest rates, to help relieve repo collateral shortage and to better regulate the tri-party repo market. The likely impact includes the avoidance of negative yield, the addition of a high quality counterparty
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October 1, 2013
Abstract We introduce a capture-analyze-manage framework to counterparty risk management. The constant risk aversion principle and a credit risk scoring system may help organizations establish a target risk level and proactively manage their positions as conditions change. Introduction Although it’s been five years since the Lehman Brothers’ bankruptcy, many corporate
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