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…
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…
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…
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…
3 min readATLANTA and BOSTON, Sept. 15, 2017 – Strategic Treasurer & Capital Advisors Group have released results from the 2017 Liquidity Risk Survey. Top survey findings included a growing corporate focus on counterparty exposure and credit facilities, widespread use of uninsured bank deposits, and an overall low priority regarding corporate investment policies. An overview of the survey…
3 min readFrom December 2015 through June 2017, the Federal Reserve raised the short-term benchmark interest rate four times, each time in an increment of 25 basis points. But according to national average deposit rates published by the Federal Deposit Insurance Corp., the interest rates banks are paying depositors have barely budged. This has occurred even though…
5 min readCapital Advisors Group published a research paper entitled, “Higher Deposit Rates – Where Art Thou?” The Abstract explains, “Bank deposits have not benefitted from recent fed funds rate increases. The absence of higher rates contrasts sharply with the yields on marketable securities and compares unfavorably with deposit rates seen in two previous Fed tightening cycles. Although prospects for higher…
5 min readAs the one-year anniversary of new regulations affecting money market funds approaches this fall, the money fund landscape seems permanently altered. The imposition of floating net asset values and fees and gates on institutional prime and municipal funds scared away investors, shrinking the assets held in those types of funds. That decline, and the impact…
2 min readThe Treasury Investment Managers’ Peer Group 2 talks tax reform, counterparty risk and vehicles for short-term liquidity in meeting sponsored by Capital Advisors Group. In an effort to prepare for possible tax repatriation and the transition from high government money market fund balances to a higher yielding alternative, members reviewed their investment options during the…
3 min readby Claire Boston May 4, 2017, 6:00 AM EDT May 4, 2017, 9:15 AM EDT Company invests $148 billion of cash pile in corporate bonds ‘Difficult for us to speculate’ on repatriation, CFO says The Takeaways From Apple’s Second-Quarter Earnings Report If Apple Inc. were a bond fund, it would dwarf the competition. The iPhone-maker…