1 min readRising interest rates may offer new opportunities for higher yields, but they also present institutional cash investors with fresh challenges. Ultra-conservative investment strategies no longer meet expectations for higher returns, so managers know they may need to move beyond a safe mix of Treasuries and FDIC-insured cash accounts. In an earlier era, their job would…
2 min readAbstract The return of yield opportunities presents institutional cash investors with fresh challenges. Higher rates have driven up the cost of staying with ultra conservative instruments. Money market fund reforms have left corporate cash managers with few clear choices to add yield. And historically popular cash vehicles that have undergone significant changes demand a fresh…
8 min readAmongst the numerous debates happening up on Capitol Hill, one that’s slipped under the radar is related to financial regulatory reform. On June 8th, with the whole of the country’s attention fixated on former FBI Director James Comey, the House of Representative passed the Financial CHOICE Act along party lines. The bill aims to rollback…
1 min readThe rapidly changing global risk management landscape has created new challenges for corporate cash managers. Money market fund reforms, rising interest rates, regulatory uncertainty and geopolitical upheavals have elevated potential risks, inviting ever-closer board scrutiny of Treasury operations. Our white paper this month, Separately Managed Accounts in Counterparty Risk Management, explores the latest challenges in…
3 min readAbstract Counterparty risk management should have an integrated framework. While utilizing a separately managed account may help reduce a corporation’s concentration risk in a money market fund, it may also be an important tool to reduce enterprise level counterparty risk. A portfolio of securities not correlated with the firm’s largest credit exposures may help to…
5 min readExecutive Summary Important regulatory changes to institutional prime money market funds are forcing new ideas and new interest in prime fund alternatives. With the SEC Form PF aggregate data, we reconstructed a profile of unregistered private liquidity funds promising investors stable $1.00 NAVs without liquidity gates. We discuss the drawbacks with private funds as being…
5 min readPotential sweeping changes in fiscal and monetary policies, a new order in international relations, and ongoing political conflicts are creating heightened uncertainty for institutional cash investors in 2017. The eventful first weeks of the Trump administration saw a rapid succession of executive orders impacting healthcare, trade, hiring, energy, education, border security, national defense, and numerous…
4 min readAbstract Recent events serve as a prelude to what is to come from the new administration. Active cash portfolio management with a separate account solution helps manage policy uncertainty, market volatility, headline and geopolitical risk. Fiscal and monetary policies, international relations and political conflicts may bring more uncertainty in 2017 than in other recent years….
1 min readFew years in recent memory rivaled the events of 2016. The Brexit vote and Trump’s win confounded pundits and prognosticators. Multiple terror attacks and a migrant crisis roiled a fractured European Union, and the United States was rocked by ongoing racial tensions and acts of home-grown terrorism. But, in spite of these tumultuous events, we…
2 min readAbstract Policy, geopolitical, and idiosyncratic risks are real under the new administration. It is too soon to tell if the next four years will be friendly to cash investors. The economic drag from trade barriers and immigration control may offset some benefits from a federal stimulus and a pro-business Republican agenda. A potentially bifurcated outcome…