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 Policy, geopolitical, and idiosyncratic risks are real under the new administration. It is too soon to tell if the next four years will be friendly to cash investors. The economic drag from trade barriers and immigration control may offset some benefits from a federal stimulus and a pro-business Republican agenda. A potentially bifurcated outcome…
3 min readAfter an initial shock, global financial markets calmed down in the week following the June 24 vote by the British electorate to leave the European Union (Brexit). As leaders from the United Kingdom and EU began a process of separation that could take several years, the immediate impact on institutional cash investors was only mildly…