1 min readIt’s human nature to generalize with broad strokes; one bad apple can spoil the whole bunch, as the saying goes. Our industry is filled with generalizations, from panning all insurance companies even when Berkshire Hathaway shines as a pillar of credit strength, to running from all Euro credits even when select Euro Financials are some…
1 min readManaging corporate cash with the objectives of capital preservation, liquidity, and return is often thought of as a staid and steady endeavor. However, in reality, buy lists need to be actively adjusted to preemptively manage credit risk. Over the last 12 months, credits have been affected by, among other things, earnings reports, regulatory reform, and…
1 min readJanuary marks the beginning of the third year since the 2008 credit crisis and the third year of consecutive growth of assets under management here at Capital Advisors Group. For this I am thankful to our clients and all the investment professionals here at CAG. Our economy enters 2011 amidst the backdrop of record economic…
2 min readNovember ushered in chilly winds as a result of the Fed’s controversial QE2 program as longer-term interest rates shifted higher, raising questions about the unintended consequences of the program. The controversy arrives just as the nation heads into the holiday season, which traditionally is a time to reflect upon the year nearly behind us. Looking…
1 min readRecent Federal Reserve communication has set the stage for additional quantitative easing in November. Not so long ago, “Fed speak” was centered on future steps that the Fed may take to gradually remove stimulus. However, this recent shift in communication has pivoted around a deceleration in growth and declining inflation expectations in the market. While…
2 min readThis past September 15th marked the second anniversary of the Lehman Brothers bankruptcy filing and the start of a long, cold hibernation for many institutional treasurers. Certainly, much has transpired in the last two years to return stability to the markets. This summer saw the sweeping Dodd-Frank financial reform bill signed to law, new international…
3 min readTrading desks across the country serve as conduits through which corporations and banks look to fund their balance sheets. A morning spent on a short term trading desk can be an eye opener for anyone seeking yield opportunities. I like to compare it to the act of peering into a bakery window – you may…
2 min readIf the mantra in real estate investing is location, location, location, then the rule of cash investing is diversification, diversification, diversification. The importance of this discipline can be seen in lessons found in the Auction Rate Securities market, certain banking sectors and in selected geographic credit exposures where either liquidity or credit issues can become…
2 min readRegular readers of our monthly newsletter may have noticed that we’ve paid particular attention to money market funds of late. It’s true. However, as you’ll see, this is another example of our firm’s philosophy to consciously and consistently seek to challenge conventional thinking about cash management. We understand that while some investors may still hold…
2 min readWelcome to the New Year edition of The Capital Advisor. Another year is now behind us (one that many are happy to put in the past) and a new decade lies before us. I’m particularly eager to see what the future may bring as those of us focused on the day-to-day management of corporate cash…