In the News

Demystifying ESG Investing Considerations for Institutional Cash Investors

ByCAG Staff - s.h.

1 min readAbstract The popularity of responsible investing has extended to the fixed-income and liquidity-management fields in recent years. Incorporating environmental, social, and governance (ESG) issues in cash investment decisions makes sense as part of overall credit risk management. In addition to challenges related to disclosure, criteria, measure, and verification, liquidity portfolios face unique challenges in the…

The Fed will be growing its balance sheet again, but don’t call it ‘QE4’

The Fed will be growing its balance sheet again, but don’t call it ‘QE4’

ByCAG Staff - s.h.

4 min readIn the days, weeks, months and probably years ahead, the Federal Reserve will be conducting operations that look and sound a lot like what it did to pull the economy out of the financial crisis. However, the process this time around will be different in the details. Where the Fed under the quantitative easing of…

Easing the Path to Profitability

ByCAG Staff - s.h.

7 min readEasing the Path to Profitability Feb 11, 2019 By Stefan Spazek Stefan Spazek outlines the steps for biopharma startups in tapping non-dilutive financing options. Management teams of early-stage life science and biotech companies must constantly monitor the financial health of their organizations—especially their cash flow. Longer-than-expected product development schedules can substantially lengthen time-to-market and cash runways, which…

A Mature Capital Structure Positions Bio-IT Startups For Success

ByCAG Staff - s.h.

5 min readA Mature Capital Structure Positions Bio-IT Startups For Success Contributed Commentary by Stefan Spazek December 6, 2018 | The financial ecosystem for life science startup companies, especially early-stage bio-IT companies, has never been healthier. According to the most recent MoneyTree Report from PwC and CB Insights, venture capital firms poured $2.8 billion into digital health companies…

Capital Advisors’ Pan on Deposit Betas: Rates Rising, But Lagging MMFs

ByCAG Staff - s.h.

4 min readCapital Advisors Group published a research brief entitled, “Deposit Betas Rising but Still Falling Short,” which discusses how bank deposit rates have lagged money fund and market rates since the Fed began hiking rates 2 1/​2 years ago. Author Lance Pan writes, “After almost a decade of near-​zero investment returns, liquidity investors are beginning to reap the benefits of…

Corporates Make Slow Return to Prime Money Funds

Corporates Make Slow Return to Prime Money Funds

ByCAG Staff - s.h.

5 min readCorporate treasury departments appear to be gradually warming up again to prime money market funds (MMFs), according to new data. And while recent tax reform may brighten MMF prospects further, the funds may have lost their status as a primary vehicle for corporates to stash cash. The volume in prime funds plummeted as MMF reform…

BofA, CAG Write on Repatriation: Funding Pressure, Offshore Reduced

ByCAG Staff - s.h.

6 min readTwo new publications discuss the possibility of the “​repatriation” of offshore corporate profits, its mechanics and the potential impact on the cash and money fund markets. The first, a “Liquid Insight” published by Bank of America Merrill Lynch, is entitled, “Repatriation Could Result in Modest USD Funding Pressure,” while the second, written by Capital Advisors Group, is…

Still Ignoring the Risks Inherent in Bank Deposits?

Still Ignoring the Risks Inherent in Bank Deposits?

ByCAG Staff - s.h.

12 min readTo paraphrase General Douglas MacArthur: Old investment policies never die; they just fade away. It’s been nearly a decade since post-financial-crisis banking reforms attempted to end the era of “too big to fail.” And it’s been nearly five years since Dodd-Frank guarantees on unlimited deposit insurance expired. But according to the 2017 Liquidity Risk Survey of 130 treasury…

Why is Ireland the U.S. government’s third-largest creditor?

Why is Ireland the U.S. government’s third-largest creditor?

ByCAG Staff - s.h.

5 min readIreland holds more than $300 billion of U.S. Treasurys, or does it? It’s no surprise that economic juggernauts China and Japan keep swapping places at the top of the list of biggest U.S. creditors. What might strike observers as odd, however, is that tiny Ireland has been lurking at No. 3 for more than a…

Don’t expect the rate hike to budge your savings interest

ByCAG Staff - s.h.

2 min readEven though Fed chief Janet Yellen has raised its target federal funds rate four times since December 2015 — with a possible fifth increase happening Wednesday — don’t expect interest on your savings deposits to rise any time soon. In part, that’s because banks just don’t need your money. As Lance Pan points out in…