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. What we’ve learned in 2015 Treasury and financial professionals appear to have begun to control bank exposures Decrease in bank deposits Survey results indicate while Money Fund usage is down…
2 min readUpheaval and change seem to be the new normal for the short-term cash markets these days. A few weeks ago, General Electric announced the upcoming divesture of the majority of its finance business, a move that will reverse its status as a ‘non-bank systemically important financial institution’ (non-bank SIFI). The news is just the latest…
1 min readWith sweeping changes coming to short term cash markets, along with a likely Fed policy shift, now is the time for a bottom-up reevaluation of cash investment strategies. Regulatory changes are altering the risk-reward relationship of the most staid solutions in cash markets, as old products are reinvented and new ones introduced. It’s been over…
2 min readFebruary brought a string of announcements from several of the largest money fund managers in the country detailing new investment strategies in response to the money fund regulatory overhaul announced by the SEC in 2014. These announcements gave clarity to the changing utility of money market funds and outlined how the investment landscape will be…
1 min readThe economic backdrop in January 2015 is markedly different from a year ago. The price of oil, the most widely used global commodity, is down over fifty percent and new deflation scares are emerging in Japan and the Eurozone. Even Tom Brady’s footballs are feeling the deflation contagion. Besides the plunge in oil prices, aggressive…
1 min readAs we transition into a new year, I reflect on 2014 as a year of steady but slow economic progress. Continued improvements in the labor markets moved the U.S. closer to the self-sustaining economy the Fed is targeting. Quantitative easing ended quietly while the U.S. equity markets continued their march upward, adding to an improved…
2 min readIn past communications we examined the changing regulatory landscape and its impact on short term investments. The catalyst for these changes was the credit crisis as government agencies scrambled to fortify the poor liquidity and over-leverage in the financial sector. The crisis also proved to be a catalyst for the evolution of the debt financing…
1 min readSeptember brought us a new war, escalating Russian sanctions, renewed equity volatility and a close call on the Scottish succession; all certainly a reminder of the complexities and challenges that can arise at any moment. As the month unfolded, we started fielding questions on the credit impact of these events, which financial institutions would be…
1 min readAs goes the real estate mantra, “location, location, location”, so liquidity is paramount to corporate treasurers. It’s etched predominately as a primary objective into almost every cash investment policy that we’ve ever reviewed. So, with the Fed’s latest round of quantitative easing set to wind up in just 45 days, all eyes were on Chairperson…
1 min readThe SEC’s announcement last week that institutional prime money market funds will soon incorporate floating NAVs, along with potential fees and gates on liquidity during times of stress, ends nearly five years of discordant regulatory deliberations. During that time, Capital Advisors Group has been active in the assessment of money fund risks through our FundIQ®…