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…
1 min readWith the October 14 imposition of floating net asset values (NAVs) on prime money market funds rapidly approaching, many institutional cash investors are taking a long, hard look at their portfolios. In addition to new prime funds with fundamentally different risk, return and liquidity profiles, investors are also coping with persistent low rates on Treasuries…
1 min readOn October 15, institutional cash investors entering the uncertain world of floating net asset values (NAVs) on institutional prime money market funds may be looking for alternative liquidity vehicles. While government money market funds may be the first obvious choice because they will still offer stable NAVs and no redemption fees or liquidity gates, increased…
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…
1 min readWith new rules for prime money market funds coming and Basel III banking reforms already here, many corporate cash managers are seeking alternatives. Major banks are limiting corporate cash deposits in response to new liquidity coverage ratio (LCR) requirements, and prime money funds will have new, less-attractive risk/reward profiles when they institute SEC-mandated floating net…
1 min readEmerging-growth companies have long used debt financing as a dependable means of extending cash runways, especially when the ebb and flow of markets injects uncertainty into when, where and how they will be able to raise new equity rounds. Recently, as competition in debt markets has increased, deep-pocketed lenders have been working to keep their…
2 min readWhen the Fed increased interest rates for the first time in nearly a decade last December, many cash investors expected multiple additional increases to follow this year. But since early January, capital market participants have been on a rollercoaster ride, buffeted by China’s stock-market meltdown, by collapsing commodity prices, and by other central banks around…
1 min readIn times of economic uncertainty, debt financing can be a valuable tool for venture capital-backed companies that need to extend cash runways between equity rounds—and now is one of those times. Since last December, emerging-growth companies have been sailing against headwinds they haven’t faced in quite a while. Growth of total U.S. venture capital investing,…
1 min readTwo years ago, the SEC was still deliberating on rules for prime money market funds that eventually resulted in floating net asset values (NAVs), liquidity fees and redemption gates. Basel III reforms affecting bank deposits were still only in the early stages of implementation. But we were already warning clients that the future might require…
1 min readFor corporate cash managers, planning to reallocate investments in an orderly way as money fund reform approaches may be a common goal, but trying to balance decisions on the utility of government money market funds versus the yield opportunities of a separately managed account can be a conundrum. While the Fed’s December interest rate hike…