1 min readNow for some good news…. Indicators of a recovering credit and liquidity environment have emerged significantly over the last month. The TED spread (3-Moth LIBOR vs. Treasuries) continued to narrow to 79 basis points, while a continued sell-off in treasuries contributed to a stronger upward bias in the Fed Funds futures contract. These indications, along…
1 min readNow well into our 18th year of working with treasury managers across the country, it’s as clear as ever that managing risk remains one of the least understood and most challenging areas of corporate cash management. The treasury landscape is littered with painful examples of write-downs from highly rated securities whose risk was miscalculated, misunderstood,…
2 min readI tend to liken the liquidity crisis to a hurricane that has hit the financial industry. Bear Stearns was swept away during the worst of the storm and now, as the weather subsides a bit, some treasurers are beginning to emerge from their shelters to assess the damage; what held fast and what may never…
2 min readAside from our own clients, in 17 years of helping guide Treasurers through the cash investment markets, I have never seen the corporate landscape littered with more casualties than today. Of all of the companies holding auction rate securities (ARS) today, an estimated 70% are experiencing regular auction failures and severe liquidity issues. In some…
2 min readFor cash investors, there exists a delicate and sometimes frustrating balance between deciding to stretch for those additional 10 basis points in yield and the urge to recoil to treasuries when isolated liquidity issues arise. To make wholesale judgments of any asset class or investment sector can result in unfounded generalizations that are rarely based…