1 min readEmerging-growth companies have long used debt financing as a dependable means of extending cash runways, especially when the ebb and flow of markets injects uncertainty into when, where and how they will be able to raise new equity rounds. Recently, as competition in debt markets has increased, deep-pocketed lenders have been working to keep their…
2 min readWhen the Fed increased interest rates for the first time in nearly a decade last December, many cash investors expected multiple additional increases to follow this year. But since early January, capital market participants have been on a rollercoaster ride, buffeted by China’s stock-market meltdown, by collapsing commodity prices, and by other central banks around…
1 min readSurvey Goal To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices and changes over time. Seven Key Things We Learned From the 2016 Survey Ignoring Bank Exposures Treasury and financial professionals have not materially changed their exposure to Bank Deposits in the wake of significant…
1 min readIn times of economic uncertainty, debt financing can be a valuable tool for venture capital-backed companies that need to extend cash runways between equity rounds—and now is one of those times. Since last December, emerging-growth companies have been sailing against headwinds they haven’t faced in quite a while. Growth of total U.S. venture capital investing,…
1 min readTwo years ago, the SEC was still deliberating on rules for prime money market funds that eventually resulted in floating net asset values (NAVs), liquidity fees and redemption gates. Basel III reforms affecting bank deposits were still only in the early stages of implementation. But we were already warning clients that the future might require…
1 min readFor corporate cash managers, planning to reallocate investments in an orderly way as money fund reform approaches may be a common goal, but trying to balance decisions on the utility of government money market funds versus the yield opportunities of a separately managed account can be a conundrum. While the Fed’s December interest rate hike…
1 min readThe cash management landscape for treasurers changed distinctly from December to January. Behind the equity headlines, short yields jumped to levels not seen in years as the Fed adjusted policy and the short curve steepened. This shift in yields is certainly a welcome event, as the 2016 “to-do” list for many treasurers may include investigating…
1 min readFrom our vantage point, 2015 was a terrific year for treasurers. After seven long years, the Fed finally changed the trajectory of short rates, and money market fund reform was embraced as the new reality. As we enter 2016, we are leaving behind the uncertainty of reform and the parsing of the “how, when and…
1 min readAs we ring in the New Year, we here at Capital Advisors Group would like to take stock of the year past and what lies ahead in 2016. Two important themes that underpin the changing of the calendar year have been the Federal Reserve raising interest rates and an economy which is seeing higher asset…
1 min readWith amendments to SEC Rule 2a-7 going into effect in the fall of 2016, institutional prime money market funds will be required to adopt floating net-asset values (NAVs) as well as provisions for fees and gates on redemptions. Because floating NAV prime funds present new considerations for cash investors managing liquidity, risk and return, they…