New Year, New Opportunities

From 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 why” of Fed policy shifts. This clarity of the investment backdrop provides new opportunities for those who have been in a holding pattern over the last several years.

We certainly understand how money market reform may be disruptive for those who can’t live with the possibility of redemption fees and gates in a liquidity product. But other investment alternatives may offer lower risk and higher yield potential in this post-reform world. So we view 2016 as a transitional year to explore new opportunities created by money fund reform and higher interest rates.

To help navigate this new era of opportunity, this past fall our research, credit, trading and portfolio teams came together to publish a comprehensive reference guide called “The New Era of Cash Management.” The book is intended to help you begin this new era with a full understanding of the tools available to effectively both pursue yield and control risk within cash portfolios. We invite you to download it here. (If you would like us to mail you a hard copy of the guide, please email Shane Fierman at sfierman@capitaladvisors.com)

While we believe this post-reform world offers a new and exciting landscape that will be the norm for years to come, we also wanted to offer a white paper on the near-term outlook for 2016 and the issues treasurers will face during this transitional year.

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Best Regards,

Ben Campbell
President & CEO