Media – Blog
August 1, 2014
The SEC’s announcement last week that institutional prime money market funds will soon incorporate floating NAVs, along with potential fees and gates on liquidity during times of stress, ends nearly five years of discordant regulatory deliberations. During that time, Capital Advisors Group has been active in the assessment of money
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May 1, 2014
Abstract The Johnson-Crapo bill represents another concrete step towards the resolution of the future of Fannie Mae and Freddie Mac and one that will further reduce the supply of government agency debt. This presents a serious challenge to the management of cash portfolios due to the core holdings status of
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April 1, 2014
Subtle language changes to the Fed’s official statement and comments from Janet Yellen’s first press conference as Chair shifted the anticipated timing of a Fed funds rate hike to the first half of 2015. The dot chart that maps FOMC members’ interest rate predictions showed that the majority expect the
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February 27, 2014
Abstract Separate accounts may offer greater return and reduced credit risk compared to prime money market funds. By examining current and future liquidity needs and the potential for significant deviations from cash flow projections, corporate treasurers may construct portfolios with direct investments in high-quality credits that satisfy current, future and
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February 3, 2014
Abstract Counterparty risk management should have an integrated framework. While utilizing a separately managed account may help reduce a corporation’s concentration risk in a money market fund, it also may be an important tool to reduce enterprise level counterparty risk. A portfolio of securities not correlated with the firm’s largest
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January 1, 2014
Abstract We elaborate on three key challenges for corporate cash investors in 2014: the emergence of new financial regulations, anticipation of a steeper yield curve, and proliferation of innovative products. As a number of financial regulations reach the stage of implementation, short-duration investors will start to feel the impact of
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September 3, 2013
Summary Opinion Institutional Shareholder Perspective: We commend the Commission for tackling the tremendous task of analyzing mountains of data before putting forth the reform alternatives for public comment. We seek to weigh in on the subject from the perspective of an institutional asset manager. Penny Rounding for Shareholder Activities: We
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August 1, 2013
Abstract We do not foresee a meaningful rise in short-term interest rates even as the Fed may begin tapering bond purchases. The fed funds rate, the key factor affecting short-term rates, likely will not start to rise prior to mid-2015. Investors should continue to look for opportunities further up the
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July 1, 2013
Abstract As we recap market developments in the first six months of 2013 and look to the future, we reflect on the following five observations from a recent liquidity conference: Low yield environment turning the corner; Corporate cash balances up, investors less worried; Supply still constrained, but more issuers entering
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June 5, 2013
Survey goal To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices. Summary of 2013 Survey Treasurer's Mindset: "Surpising Complacency with Bank Exposures" Context: FDIC insurance dropped from Unlimited t0 $250,000 Dodd-Frank Bank deterioration continues Select Highlights: Debt: Continued increase in
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