10 min readCo-authored by: Spyros Qendro, CFA®, and Carter Bourassa DOWNLOAD FULL REPORT Abstract In an environment characterized by limited forward visibility, it’s more crucial than ever for cash investors to understand the landscape and the risks and opportunities it creates. In this paper, we will evaluate what makes a successful cash management strategy while underscoring the…
7 min readAs a registered investment advisor whose sole focus is on cash investments, Capital Advisors Group has a very clear mission: to make sure the strategies we develop for our clients comply with their investment policies, risk tolerance, and current business situation. Under the Investment Advisers Act of 1940 which governs SEC registered investment advisors, we…
10 min readAbstract The evolving treasury cash investment landscape and yield disadvantage of bank deposits have prompted many practitioners to look for alternative options for managing their excess cash. We address this topic in a generalized manner, summarizing three major categories of available cash investment vehicles: deposits, pooled assets and direct purchases. The pros and cons of…
3 min readAbstract Offshore institutional money market funds (MMFs) have largely sat in the periphery for US-centric liquidity investors, but European reform and repatriation of overseas profits may result in transformational changes. Offshore fund investors will have few alternatives other than low volatility net asset value (LVNAV) funds. Public debt funds may not accommodate large inflows. A…
4 min readAbstract For institutional cash investors unsure of separately managed accounts in a rising interest rate environment, our scenario analysis suggests that a laddered portfolio of agency and corporate securities with a modest WAM could outperform the government money market fund proxy with negligible unrealized loss concerns. Both agency and corporate portfolios with maximum maturities of…
3 min readAbstract Debt limit negotiations often go down to the wire, generating headline risk and investor uneasiness. The yield on T-bills maturing around default date may be substantially higher than those maturing in neighboring months. The exponential growth in government money market funds since the 2016 regulatory reform increases contagion risk should shareholders and portfolio managers…
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…
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….
4 min readRemember the debt ceiling fights of 2011 and 2013? They may be in the back of many investors’ minds now, but will likely be front and center again leading up to March 15, when the suspension of the federal government debt ceiling expires. Any institutional cash investor who lived through those earlier Congressional standoffs knows…