2 min readCapturing 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 market funds, which have moved…
2 min readEach year at this time we look ahead and identify challenges that we believe will define the landscape treasurers will face in the New Year. Not unlike the GPS tools that can identify traffic, weather and detours that may be encountered en route to one’s destination, our goal is to survey the road ahead to…
1 min readDecember’s arrival brings with it tidings of uncertainty for Treasury professionals. The looming fiscal cliff and the December 31st expiration of the Transaction Account Guarantee (TAG) program bracket a variety of outcomes for tax policy, spending and deposit regulations that could have wide-ranging repercussions for businesses. One challenge we explored last month was the expiration…
1 min readSince 2008, the cash markets have been positively impacted by a massive regulatory overhaul and supported through a multitude of government programs that led to credit generation and stability in the markets. Investors reacted positively to these programs, sifting through a variety of new choices that now offered government guarantees of principal and interest on…
1 min readThe FOMC made two points clear in their September 13 statement as they announced an open-ended security purchase program to keep downward pressure on interest rates: “Strains in global financial markets continue to pose significant downside risks to the economic outlook,” and “Exceptionally low levels for interest rates are likely to be warranted at least…
2 min readThe much-anticipated vote on proposed changes to money market fund regulations was called off by SEC Chairwoman Mary Schapiro just days ago after she apparently failed to persuade the “swing vote,” Commissioner Luis Aguilar, to support her proposal. Ms. Schapiro’s reforms specifically targeted the issue of shareholder risk and they included the implementation of a…
2 min readAlong with the scorching weather, July brought the hotly debated and long-anticipated proposal for money market fund reform to the hands of the SEC Commissioners for review and a possible vote. Additional regulatory uncertainty is scheduled for the end of 2012, when the FDIC´s unlimited coverage on transactional accounts is expected to expire. With two…
1 min readIn the aftermath of the 2008 credit crisis, there seemed to be just two options for investing corporate cash – government-issued or government-backed debt – allowing for capital preservation but little to no return. While the purchase of securities issued or guaranteed by the U.S. government continues to remain in favor with many corporate cash…
1 min readSurvey 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 collateral Continued tighter covenants Forecasting:…
1 min readIn 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 robust investment policy enables controlled…