Media – Blog
March 23, 2016
Many people tend to believe that the world of corporate cash investments revolves around two limited choices: bank deposits and money market funds. But several decades ago before the rapid adoption of prime money funds, a third choice—direct purchase and management of marketable securities in separately managed accounts (SMAs)—was routinely
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March 21, 2016
CFOs of emerging growth companies have always faced unique challenges in managing their corporate cash accounts as they juggle multiple rounds of financing, unpredictable burn rates and uncertainty about when products in development will turn into revenue. But in 2016, rising interest rates combined with recent regulatory reforms will make
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March 3, 2016
For 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
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December 10, 2015
With amendments to SEC Rule 2a-7 going into effect in the fall of 2016, institutional prime money market funds will be required to adopt floating net-asset values (NAVs) as well as provisions for fees and gates on redemptions. Because floating NAV prime funds present new considerations for cash investors managing
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December 1, 2015
As we approach the first rate hike cycle in almost a decade, it makes sense for cash investors to take stock of the state of the economy, as well as the Fed’s view of it. The pace at which the Fed raises interest rates will be important to anyone managing
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November 1, 2015
October brought a string of articles in the Wall Street Journal and other financial publications highlighting the impact money market fund reform and liquidity coverage ratios may have on corporate cash investments. The gist of these articles was that after years of little environmental change, treasurers are now faced with
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August 19, 2015
A supply shortage of investments suitable for short-term corporate cash management is looming, exacerbated by new Dodd-Frank and Basel III banking regulations and upcoming money market fund reforms. As bank deposits and money funds become less available and less attractive, treasury professionals will be considering other investment-grade securities. However, they
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August 5, 2015
Money market fund reforms, new banking regulations, and the prospect of rising interest rates are motivating a top-to-bottom restructuring of many corporate cash portfolios in 2015 and 2016. As corporate treasurers strike a new balance of bank deposits, reconstituted institutional money market funds, and separately managed portfolios of directly purchased
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August 1, 2015
As strategies to deal with money fund reform move to the forefront for many treasurers, the landscape for money fund alternatives has evolved significantly. One of the largest factors impacting alternate investment strategies has been the supply contraction of high-grade securities rated AA or higher. Gone are the days when
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July 1, 2015
Among the most interesting statistics in the 2015 AFP Liquidity Survey from the Association for Financial Professionals (AFP) is that 52 percent of corporate treasurers are considering use of separately managed accounts (SMAs) as a response to the 2016 reforms that will change the nature of institutional money market funds.
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