2 min readAbstract The expiration of transaction account guarantees requires actions from treasury cash managers. While essentially all of the $2.0 trillion growth in domestic deposits since 2007 went to the 20 largest banks, the banks’ deposit credit strength declined by almost three ratings notches over the same period. Although 13 of the 20 had Aaa deposit…
2 min readAbstract Recent negative bank ratings actions foretell a secular trend that capital markets-oriented banks are slipping toward the lower tier of investment-grade categories. We believe these ratings downgrades are more than a temporary phenomenon that is easily reversible. While the near-term effect on corporate treasury portfolios will likely be manageable, long-term ramifications require more investor…
2 min readFebruary ushered in a sea of potential changes for corporate cash managers. Early in the month, The Wall Street Journal reported on a pending proposal by the SEC to stabilize money market funds through additional regulations. Later in the month, Moody’s Investors Service announced a total of 120 banking credits were being placed on negative…