13 min readAs the market’s attention was drawn to the war in Ukraine, supply chain disruptions, runaway inflation, and higher interest rates, a significant deadline quietly passed. April 11 marked the end of the comment period for the new round of money market fund (MMF) reforms proposed by the Securities and Exchange Commission (SEC). As the Fed…
1 min readWatch the webcast: Click the above webcast link for episode 1 of Credit Update. Hosted by Capital Advisors Group’s Director of Investment Research and Strategy, Lance Pan. Topics covered: Recap of Recent Market Events How to Balance Credit Risk in a Portfolio During Times of Economic Volatility (e.g., COVID-19) Overview of Corporate Paper (CP) Bid-Ask…
2 min readApril Unemployment Report Shows Record Job Losses The April unemployment report released on May 1st reflected a loss of over 20 million jobs, and an unemployment rate over 14%. The number of newly unemployed in April wiped out the last decade of job gains, and the unemployment rate easily beat the previous 10.8% high recorded…
12 min readDOWNLOAD FULL REPORT Abstract Extraordinary market volatility from COVID-19 led to a complete reset of portfolio strategies and expectations in cash investments. While liquidity has turned the corner, the path to recovery and a normal investment environment may be a long one. Fighting credit issues on one hand and the risk of negative interest rates…
2 min readFOMC Meeting The Federal Reserve has taken extraordinary steps over the past six weeks to shield the economy from the massive fallout of the virus pandemic, including emergency interest rate cuts, massive bond purchases and the opening of multiple lending facilities to provide liquidity and backstops to the fixed income markets. Following their regularly scheduled…
1 min readWatch the webcast: Click the above webcast link for episode 1 of Market Update. Hosted by Capital Advisors Group’s Head of Trading, Anthony Cucinotta. Topics covered: Recap of Recent Market Events FOMC Rate Cut and Impact U.S. 1 Month Treasury Bill Analysis COVID-19 Impact on Short-term Investors Overview of OAS Adjusted Spreads Overview of FOMC…
1 min readWe hope you are all safe during this extended period of sheltering at home. Life has changed immeasurably for most of us since February 13, when we published a report on COVID-19 and its impact on liquidity portfolios. Our comments in that report still apply, and on March 31, we provided additional valuable market intelligence…
4 min readThe 2019 mid-September liquidity squeeze in overnight repo markets was perhaps the single most noteworthy event in the cash markets last year. As we noted at the time, the event posed major questions about the post-crisis banking regime and its impact on banks’ ability to lend out reserves. It also asked important questions of the…
3 min readEvery January, we point to three trends cash managers should keep an eye on in the coming year. In 2019, we hit the nail on the head when we highlighted the inverted yield curve, trade wars, and Brexit. Each of those issues kept institutional cash managers busy all year. First, the Fed reversed course with…
14 min readDOWNLOAD FULL REPORT Abstract We identify three themes to watch for cash investors each year. For 2020, we comment on the Fed’s neutral stance, the continued non-solution for repo market liquidity, and the popularity of ESG (environmental, social and governance) investing. Introduction At the start of each year, we typically name three broad themes that…