1 min readIt appears that in a few weeks’ time, the Janet Yellen Fed may finally tighten the reins on the slightly anemic but well-employed U.S. economy. If economic reports stay neutral-to-positive through December, we could see the first Fed funds interest rate hike since the mid-aughts. This shift has been seen before, causing repercussions that reverberated…
1 min readThe life sciences debt financing market has experienced a turbulent decade. From the highs of the mid-2000’s to the credit crisis of 2008, and eventually to the slow but steady climb since 2010, investment and opportunity have expanded and contracted. Many of the market forces that made equity markets so volatile during this period impacted…
2 min readOctober brought a string of articles in the Wall Street Journal and other financial publications highlighting the impact money market fund reform and liquidity coverage ratios may have on corporate cash investments. The gist of these articles was that after years of little environmental change, treasurers are now faced with significant modifications to both prime…
1 min readAugust’s surprise devaluation of the Yuan touched off market volatility not seen in years (I watched the Dow tick down over 1000 points on August 24). While all eyes were on the world’s second-largest economy, we were monitoring cash safe havens of old and pondering how new cash vehicles might handle the past month’s volatility….
2 min readA supply shortage of investments suitable for short-term corporate cash management is looming, exacerbated by new Dodd-Frank and Basel III banking regulations and upcoming money market fund reforms. As bank deposits and money funds become less available and less attractive, treasury professionals will be considering other investment-grade securities. However, they can expect to find a…
2 min readMoney market fund reforms, new banking regulations, and the prospect of rising interest rates are motivating a top-to-bottom restructuring of many corporate cash portfolios in 2015 and 2016. As corporate treasurers strike a new balance of bank deposits, reconstituted institutional money market funds, and separately managed portfolios of directly purchased short-term securities, we expect to…
1 min readAs strategies to deal with money fund reform move to the forefront for many treasurers, the landscape for money fund alternatives has evolved significantly. One of the largest factors impacting alternate investment strategies has been the supply contraction of high-grade securities rated AA or higher. Gone are the days when a cash portfolio could be…
1 min readAfter years of an equity bull market, alternative financing options for companies continue to expand, creating opportunities for debt structures that didn’t exist just five years ago. This proliferation of specialized lending is compressing both lending terms and borrowing costs. While this compression in borrowing costs may be partially offset by gently rising interest rates…
2 min readAmong the most interesting statistics in the 2015 AFP Liquidity Survey from the Association for Financial Professionals (AFP) is that 52 percent of corporate treasurers are considering use of separately managed accounts (SMAs) as a response to the 2016 reforms that will change the nature of institutional money market funds. That finding may come as…
2 min readPeer group benchmarking is an important exercise for any industry. Over time, benchmarking can identify current industry trends and contribute to goal setting for organizations that strive to stay current with best practices. Here at Capital Advisors Group, while we maintain peer group investment policies which aid in the construction of new investment guidelines, our…