1 min readSurvey Objective To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices and changes over time. Key Survey Takeaways Corporate Investment Policies are a Low Priority 41% have not made any changes to their corporate investment policy in the past 2 years. Only 23% have updated their…
1 min readRising interest rates may offer new opportunities for higher yields, but they also present institutional cash investors with fresh challenges. Ultra-conservative investment strategies no longer meet expectations for higher returns, so managers know they may need to move beyond a safe mix of Treasuries and FDIC-insured cash accounts. In an earlier era, their job would…
1 min readWhen the Federal Reserve began amassing Treasuries and mortgage-backed securities to fight deflation in the wake of the 2008 financial crisis, no one knew for sure how much debt it would add to the nation’s balance sheet, or how long the unprecedented “quantitative easing” program would last. While the answers are still by no means…
1 min readThe rapidly changing global risk management landscape has created new challenges for corporate cash managers. Money market fund reforms, rising interest rates, regulatory uncertainty and geopolitical upheavals have elevated potential risks, inviting ever-closer board scrutiny of Treasury operations. Our white paper this month, Separately Managed Accounts in Counterparty Risk Management, explores the latest challenges in…
2 min readFinancing growth through debt has long been a staple of modern corporate economics, especially for early-stage ventures and emerging growth companies. But intense competition among lenders in the past decade has changed the rules of the game. What was once a straightforward business consisting of fixed-rate loans backed by hard assets now features an array…
1 min readIt may be time for a refresher course on the pros and cons of bank deposits as the primary repository of corporate cash. In the wake of last fall’s transition to floating net asset values (NAVs) at institutional prime money market funds, treasurers were already going through a once-in-a-generation rethink of liquidity and risk. Now,…
1 min readAre you homesick for the good old days of dollar-in, dollar-out prime money market funds? It’s only been a few months since the SEC imposed floating net asset values (NAVs) on institutional prime funds, along with optional redemption fees and liquidity gates. Since then, treasurers have been scurrying for alternatives offering the same liquidity and…
1 min readUncertainty is the watchword for institutional cash investors in 2017. Market volatility, fiscal disputes, rising interest rates, geopolitical conflict, headline risk, and last year’s disruptive money market fund reforms have all been amplified by the torrent of tweets from 1600 Pennsylvania Avenue. The result is a perfect storm of uncertainty prompting cash managers to rethink…
1 min readFew years in recent memory rivaled the events of 2016. The Brexit vote and Trump’s win confounded pundits and prognosticators. Multiple terror attacks and a migrant crisis roiled a fractured European Union, and the United States was rocked by ongoing racial tensions and acts of home-grown terrorism. But, in spite of these tumultuous events, we…
1 min readOn November 8th, many corporate cash managers plotting their 2017 investment strategies confidently anticipated a “more-of-the-same” Hillary Clinton administration. But instead, they woke up on November 9th wondering where in the world President-elect Donald J. Trump might lead the economy. Will a “Good Trump” succeed in delivering consistent economic performance? Will he (more or less)…