4 min readOur panel session at this year’s AFP Conference on “Managing Liquidity in a Post-Reform World” came at an opportune time—just after new SEC regulations on institutional prime money market funds went into affect that have already started to dramatically transform the cash management landscape. So it was no surprise when much of the formal discussion…
2 min readMany institutional cash investors found themselves on the sidelines on October 14, when prime money market funds finally instituted SEC-mandated floating net asset values, optional redemption fees and possible liquidity gates. Confronted with an entirely new risk/reward equation, many investors are investigating the alternatives, either considering making their own direct investments or exploring working with…
1 min readThe day we’ve all been anticipating is here. SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates are going into effect at institutional prime money market funds today. But markets have already started to answer our questions about the impact of the changes. And this month’s Capital Advisors Group research report suggests that…
1 min readIntroduction Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity Risk Survey of 130 treasury professionals by Strategic Treasurer and Capital Advisors…
1 min readAre you moving most of your cash to the sidelines? With new and uncertain risk profiles looming for prime money market funds when SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates go into effect Oct. 14, many corporate cash managers are defaulting to traditional “safe havens.” More than three quarters of the…
5 min readNew Liquidity/Risk Survey Identifies Opportunity Costs Associated with Bank Deposits and Government Securities Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity…
1 min readWith the October 14 imposition of floating net asset values (NAVs) on prime money market funds rapidly approaching, many institutional cash investors are taking a long, hard look at their portfolios. In addition to new prime funds with fundamentally different risk, return and liquidity profiles, investors are also coping with persistent low rates on Treasuries…
1 min readOn October 15, institutional cash investors entering the uncertain world of floating net asset values (NAVs) on institutional prime money market funds may be looking for alternative liquidity vehicles. While government money market funds may be the first obvious choice because they will still offer stable NAVs and no redemption fees or liquidity gates, increased…
1 min readAs seismic events go, Brexit ranks right up there. It was unpredicted, and its disruptive influence quickly radiated out from its London epicenter. As the news spread, commentary from a sea of pundits flooded the market with various macro views of the potential damage Great Britain’s exit from the Euro zone would cause. While many…
1 min readWith new rules for prime money market funds coming and Basel III banking reforms already here, many corporate cash managers are seeking alternatives. Major banks are limiting corporate cash deposits in response to new liquidity coverage ratio (LCR) requirements, and prime money funds will have new, less-attractive risk/reward profiles when they institute SEC-mandated floating net…