2 min readAfter the first quarter dip in GDP, June brought heavy scrutiny of the Fed’s plans as they concluded a two-day meeting and updated their various forecasts for growth and inflation. While the taper continues on track to conclude by year end, the Fed made it clear that the pace and mechanisms of further monetary action…
1 min readSurvey 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 which they negotiate and renegotiate…
1 min readThe evolution of risk management practices has been impressive over the last quarter century. The industry has gone from risk reports printed on curly fax paper to integrated counter party risk management systems. As practices have evolved, the complexities of risk management have evolved as well. To capture these trends, Capital Advisors Group along with…
1 min readCFOs, 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 counterparty risk exposure policies or…
1 min readRegulatory reform has been a constant presence in the world of cash investments over the past five years, and it’s had a significant impact on credit risk, supply and return. As the dust from the credit crisis began to settle, most short-term investments including bank deposits, money funds and commercial paper were, by necessity, wrapped…
2 min readSubtle language changes to the Fed’s official statement and comments from Janet Yellen’s first press conference as Chair shifted the anticipated timing of a Fed funds rate hike to the first half of 2015. The dot chart that maps FOMC members’ interest rate predictions showed that the majority expect the first rate hike to come…
1 min readMoney market funds and bank deposits have been traditional sources of liquidity for corporations. However, the unlimited FDIC guarantee on non-interest bearing deposits expired more than a year ago and money market funds have come under scrutiny from both investors and regulators. With the SEC scheduled to announce its final regulatory changes this year, which…
1 min readThis past month we wrapped up our third webinar on counterparty risk management, finishing the three part series we began last October. Our goal of the webinar series, hosted by ourselves and Strategic Treasurer, was to raise awareness of the challenges treasurers face in managing counterparty risk and, as a thought leader in the industry,…
1 min readAs 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 low rate environment as the…
1 min readTransparency is the new buzz for corporate treasury professionals in their constant pursuit to understand and track underlying risk. Like the shifting channels of the Mississippi River, credit exposures in investments and counterparties present continuously variable hazards to navigation. The credit crisis intensified treasurers’ efforts to understand their exposures, but too often formal reports were…