In the News

2 min readIf treasurers aren’t already having trouble sleeping, a Moody’s Investors Service report on the effects of the financial crisis on money market funds could well lead to insomnia. Moody’s says that between 2007 and 2009, as volatility and illiquidity spread through the financial system, no fewer than 36 money market funds in the U.S. and…

3 min readWhat banks charge each other for dollars slipped on Monday in the wake of remarks from U.S. Federal Reserve chief Ben Bernanke that the central bank has sufficient tools to support economic growth. In bill trading, there was record bidding for $30 billion worth of three-month U.S. government debt as investors scrambled for low-risk investments…

3 min readFor many treasurers and their bosses, prime money-market funds have provided enough yield on investable cash during the past year and a half — enough while interest rates have been so low, that is. But as a result of new Securities and Exchange Commission rules for these funds, companies may now be paying an unnecessary…

3 min readA little-known but significant consequence of the financial crisis is that U.S. money-market funds have been forced to buy European bank debt in dramatically higher proportions. A combination of U.S. banks issuing less debt and funds looking to diversify has seen European banks play a dominant role in U.S. money-market fund portfolios — and even…

1 min readHere’s some news that will conjure up the possibility of a potential new round of bailouts of banks Too Big To Fail. European banks are playing a dominant role in U.S. money-market fund portfolios — even European debt fears haven’t stemmed the appetite, reports MarketWatch. The percentage of foreign bank obligations — which are largely…

3 min readA benchmark on what banks charge each other for dollars fell to a 2-1/2 month low on Friday on bets that the Federal Reserve will cling to an ultra-loose monetary policy at least a year from now. Across the Atlantic, key bank-to-bank lending rates on euros slipped, but the dip did not signal a fundamental…

2 min readIt’s a tenet of investing drilled into first-year business students: A diversified portfolio offers lower risk and higher returns than investing in single assets, as Investopedia explains. After all, the likelihood that several unrelated types of assets will move in the same direction at the same time historically has been pretty low. That’s why many…

4 min readWhen investors want to escape the volatility of the financial markets, they often head for the relative calm of money market funds. Yet for the second time in as many years, some investors have raised concerns over whether the cash that investors hold in money market funds is as safe as people think it is….

3 min readIn a rare convergence, several publications related to money market investing were posted yesterday. Capital Advisors writes in its monthly publication, “The Capital Advisor,” on “How Greek Tragedies May Affect Cash Investments,” BNY Mellon writes in its quarterly “Liquidity Directions” newsletter on “New SEC Reforms for Money Market Funds,” and SVB Financial Group writes in…