2 min readInterest rates on U.S (Other OTC: UBGXF – news) . Treasury bills due in early November rose on Friday as the government approached its borrowing cap, and there were no immediate signs Congress will approve a proposal to raise it. Adding to the upward pressure on T-bill rates was a broad sell-off in U.S. Treasuries…
3 min readThe new bank deposits dynamic is putting some treasurers and other cash managers in a bind. When banks have to hold higher reserves against corporate deposits, these deposits become unattractive as a means of funding loans — so unattractive that financial institutions are motivated to move the excesses off their balance sheets or charge fees…
2 min readBoutique cash manager Capital Advisors Group released a white paper entitled, “The Transformation of Corporate Deposits in a New Regulatory Environment” and a press release entitled, “Capital Advisors Group to Introduce Liquidity Accounts for Corporate Cash Investments.” The paper’s abstract says, “Bank deposits have always represented the main cash management vehicle for institutions. Growth in…
5 min readCompanies reaching for better returns on their cash have found a new favorite investment—other companies’ bonds—and they are loading up. Cash-rich companies like Apple Inc., Oracle Corp. and Johnson & Johnson are snapping up corporate bonds sold by highly rated companies such as Verizon Communications Inc. and Gilead Sciences Inc. More than half of corporate…
3 min readLooking for a little bit more return but still don’t want a lot of risk? Try expanding your investment policy to include BBB corporate bonds, says Capital Advisor’s Lance Pan in a recent report. BBB corporate bonds actually are only “moderately” riskier than their better-rated cousins, but at the end of the day, will offer…
2 min readTreasury and Risk magazine published an article, “Short-Term Investors at Crossroads.” It says, “Corporate treasuries continue to stow the majority of their short-term cash in bank deposits, according to a recent survey, and put the largest chunk of the remaining money into money-market funds, a traditional short-term investment option. But those patterns could change in…
6 min readCorporate treasuries continue to stow the majority of their short-term cash in bank deposits, according to a recent survey, and put the largest chunk of the remaining money into money-market funds, a traditional short-term investment option. But those patterns could change in the next year or so as U.S. interest rates rise and new regulations…
6 min readSEI Investments is the latest fund family to consolidate its fund lineup and liquidate share classes, shifting all of its outstanding share classes into A shares, according to recent SEC filings.” The July 6 Prospectus Supplement says that for each of the following funds, SEI Prime Obligations Fund, SEI Money Market Fund, SEI Government Fund,…
3 min readHere are some groups not looking forward to General Electric cleansing its balance sheet of most of the remaining assets of GE Capital: money-market funds, institutional investors, and corporate treasurers who invest directly in highly rated corporate debt. Why? A much smaller or nonexistent GE Capital will bring a considerable reduction in GE’s wholesale funding…
6 min readThe next 12 to 14 months will be a very critical period for the money market fund industry — a period of preparation and implementation for the changes that are due to be implemented in October 2016, said Ben Campbell, CEO, Capital Advisors, speaking during a webinar this week entitled, “Recent Money Fund Developments and…