3 min readNew Liquidity/Risk Survey Identifies Opportunity Costs Associated with Bank Deposit Balances BOSTON, June 30, 2016 – Many corporate treasurers are “ignoring bank exposures” in the wake of reforms that are changing the risk and liquidity profiles of prime money funds and bank deposits, a new survey has found. The 2016 Liquidity Risk Survey of 130 treasury…
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…
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…