3 min readThe Federal Reserve meets next week, and it will, once again, decide what interest rate the economy needs to get inflation under control while continuing to grow. The aim is to get back to a normal economy. The calculation, however, depends on what your definition of “normal” is and what interest rate we’d have in normal,…
4 min readOne year after Silicon Valley Bank’s implosion, the venture debt market has yet to crown a new king. When the bank, which held accounts for almost 50% of VC-backed tech and life science companies in 2022, collapsed on March 10, 2023 , the impact saw widespread financial panic among startups and in related markets. VC-backed…
6 min readWhile environmental, social, and corporate governance (ESG) investing became something of a political hot potato in 2023, it’s increasingly clear that ESG isn’t likely to go away. Treasury professionals responsible for their organization’s institutional cash investment portfolios need to understand the ins and outs of ESG investing. But with more than 100 ESG data ratings…
5 min readRecent bank failures prompted outflows of U.S. bank deposits into systemically important banks, but money market funds — less used by treasurers and CFOs the past few years — also benefited. About $30.3 billion was poured into U.S. money-market funds (MMFs) in the week of April 12, according to data from the Investment Company Institute….
10 min readLook past headline risk, seek out high-quality credits, and position maturities for a possible default “X-date.” _________________________ Lance Pan, CFA Once again, it’s time for CFOs and corporate cash investors to start focusing on another debt ceiling showdown in Congress. In a January 19 letter, Treasury Secretary Janet Yellen declared that the United States had…
10 min read2022 proved to be a defining year for institutional cash investors. An era of low interest rates that lasted more than a decade was flipped on its head, as we entered a new era of interest-rate increases amidst a confluence of economic events. The Federal Reserve tightened policy at a nearly unprecedented speed, raising its…
5 min readFor the first time in a while, there’s enough yield in short-term cash investing to make CFOs and treasurers notice. Relatively safe and liquid money market funds, Treasury bills, and other credit instruments have attractive rates again because of the Federal Reserve’s interest rate hikes. Inflation, of course, has also made seeking some yield prudent…
7 min readTurbocharging Early-Stage Biotech Growth With Venture Debt Source: Life Science Leader By Stefan Spazek The COVID-19 pandemic, an aging population, and other dynamics have dramatically increased demand for life sciences innovations in 2020 and 2021. And the biopharma industry has responded by raising record amounts of venture capital to fund development of new drugs, drug…
2 min readNorthern Trust Corp. is shutting down a money-market mutual fund after volatility in March spurred redemptions that sent it below a regulatory threshold for maintaining liquidity. The $1.7 billion Northern Institutional Prime Obligations Portfolio will stop accepting new investments next month and start selling its holdings under a liquidation plan set for July 10, according to a filing Monday….
1 min readThe score that they find most closely related to fund volatility is the environmental score. In Demystifying ESG Investing Considerations for Institutional Cash Investors, Lance Pan explains how ESG issues in cash investment decisions makes sense as part of overall credit risk management. He explains By: Frank J. Fabozzi