7 min readOctober 14 has come and gone and there are a couple money market fund trends that may bode well for prime money market funds. One is that spreads between institutional prime and government MMFs have widened since the October 14 implementation of new SEC rules. The second is that prime fund portfolios’ weighted average maturities…
4 min readA press release entitled, “ICD Releases Essential MMF Reform Solutions for Corporations, which says, “Institutional Cash Distributors (ICD) today announced the release of Transparency Plus 6.0 providing several key on-line and reporting enhancements that are necessary for corporate treasury practitioners to effectively manage portfolios that include institutional prime money market funds.” Among the highlights: it…
4 min read Assets have been flowing out of institutional prime money funds ahead of the Oct. 14 implementation of new regulations that will require prime funds to adopt a floating net asset value (NAV). At the same time, though, a recent survey of finance executives suggests some are warming up to the idea of funds with…
4 min readTwo years ago, the Securities and Exchange Commission (SEC) was still deliberating on new rules for prime money market funds, and Basel III banking reforms were only in the early stages of implementation. Since then, major banks have started limiting corporate cash deposits in response to new liquidity coverage ratios, and prime funds are substantially…
1 min readThe approach of the October implementation date for new rules governing institutional prime money market funds is shaping up as a dividing line for corporate treasuries and other institutional investors, with many observers predicting a mass exodus from prime funds in the months before the rules take effect.
4 min readLast month’s spike in failed trades in Wall Street’s key funding market sparked fears that it could be a sign of trouble brewing in the U.S. financial system, but the disruptions appear more likely to mark the “new normal” of the post-crisis era. Wall Street institutions, hedge funds and real estate investment trusts rely on…
2 min readCapital Advisors Group released yet another white paper, “Optimizing Separate Account WAM in a Rising Rate Environment.” The introduction says, “Faced with the challenges of banks turning away non-operating deposits and prime money market funds subject to redemption fees and gates, institutional cash investors increasingly turn to separately managed accounts (SMAs) as a viable cash…
4 min readWhen it comes to putting their massive cash reserves to work in search of a decent return, U.S. companies are helping one another out by buying the bonds of their brethren. Some 52.7 percent of the cash held by publicly traded, nonfinancial companies was invested in those securities as of January 1, according to Clearwater…
4 min readJ.P. Morgan Chase & Co. will raise deposit rates for some of its biggest clients in January, according to a person familiar with the matter, following the Federal Reserve’s decision to raise interest rates this month. The move by J.P. Morgan, the largest U.S. bank by assets, makes it an early mover among its American…
11 min readWith interest rates poised to move higher in 2016, many treasury professionals are hoping for a return to the good old days of decent yields in safe investments for their corporate and institutional cash. However, the world they’ll encounter when rates finally do rise will be very different from the higher-rate environment they left eight…