Cross-Sector

Six Advantages of Separately Managed Accounts Over Ultra-short Bond Funds

Six Advantages of Separately Managed Accounts Over Ultra-short Bond Funds

Investment Management

1 min readAbstract Important regulatory changes to institutional prime money market funds are forcing institutional cash managers to look elsewhere. While ultra-short bond funds hold promises, they exhibit many of the same drawbacks of commingled vehicles. A well-researched and well-structured separately managed account may overcome these drawbacks while delivering comparable or better benefits. Commingled vehicles and separate…

Money Market Funds at Inflection Point

Money Market Funds at Inflection Point

Investment Management

2 min readAbstract An Industry at an Inflection Point – Outflows from prime funds have been more severe than forecast. Fewer funds and fewer fund companies are left in the prime space. While stable NAV government funds will likely continue to flourish, the appeal of prime funds has diminished. Diminished Yield Potential – The anticipated higher prime-to-…

Money Market Funds at the Inflection Point: Opportunities for Cash Investors

Investment Management

1 min readThe day we’ve all been anticipating is here. SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates are going into effect at institutional prime money market funds today. But markets have already started to answer our questions about the impact of the changes. And this month’s Capital Advisors Group research report suggests that…

Corporate Treasurers Ignoring Bank Exposures Before Prime Money Market Fund Transition

Corporate Treasurers Ignoring Bank Exposures Before Prime Money Market Fund Transition

Credit & Risk

1 min readIntroduction Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity Risk Survey of 130 treasury professionals by Strategic Treasurer and Capital Advisors…

Leaving Your Cash on the Sidelines? Think About the Opportunity Costs

Leaving Your Cash on the Sidelines? Think About the Opportunity Costs

Investment Management

1 min readAre you moving most of your cash to the sidelines? With new and uncertain risk profiles looming for prime money market funds when SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates go into effect Oct. 14, many corporate cash managers are defaulting to traditional “safe havens.” More than three quarters of the…

Corporate Treasurers Ignoring Bank Exposures Before Prime Money Market Fund Transition

Corporate Treasurers Ignoring Bank Exposures Before Prime Money Market Fund Transition

Credit & Risk

5 min readNew Liquidity/Risk Survey Identifies Opportunity Costs Associated with Bank Deposits and Government Securities Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity…

Brexit: Big Deal, or Not?

Credit & Risk

1 min readAs seismic events go, Brexit ranks right up there. It was unpredicted, and its disruptive influence quickly radiated out from its London epicenter. As the news spread, commentary from a sea of pundits flooded the market with various macro views of the potential damage Great Britain’s exit from the Euro zone would cause. While many…

Brexit: Five Takeaways for Institutional Cash Investors

Brexit: Five Takeaways for Institutional Cash Investors

Credit & Risk

3 min readAfter an initial shock, global financial markets calmed down in the week following the June 24 vote by the British electorate to leave the European Union (Brexit). As leaders from the United Kingdom and EU began a process of separation that could take several years, the immediate impact on institutional cash investors was only mildly…

Brexit: What Cash Investors Need to Know

Brexit: What Cash Investors Need to Know

Investment Management

4 min readThere has been an increasing amount of coverage in the financial news media recently about the United Kingdom’s upcoming referendum regarding membership in the European Union (EU). On Thursday, British citizens will vote on the question: “Should the United Kingdom remain a member of the European Union or leave the European Union?” Should the Leave…

Nine Elements of Credit Approval for Cash Portfolios

Nine Elements of Credit Approval for Cash Portfolios

Credit & Risk

1 min readAbstract In this research commentary, we offer a behind the scenes look at the credit approval process for cash investment portfolios. We discuss nine essential components to help clarify a process that can sometimes seem mysterious and intimidating. Beyond Ratings – What Makes Cash Unique The Credit Universe – It’s All About Supply Preliminary Screening…