Media – Blog
June 3, 2008
Now for some good news…. Indicators of a recovering credit and liquidity environment have emerged significantly over the last month. The TED spread (3-Moth LIBOR vs. Treasuries) continued to narrow to 79 basis points, while a continued sell-off in treasuries contributed to a stronger upward bias in the Fed Funds
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June 2, 2008
Now well into our 18th year of working with treasury managers across the country, it’s as clear as ever that managing risk remains one of the least understood and most challenging areas of corporate cash management. The treasury landscape is littered with painful examples of write-downs from highly rated securities
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June 1, 2008
Now into our 18th year of working with treasury managers across the country, it’s as clear as ever that managing risk remains one of the least understood and most challenging areas of corporate cash management. The treasury landscape is littered with painful examples of write-downs from highly rated securities whose
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May 1, 2008
Executive Summary Prior to the recent credit crisis, strong criticism of money market funds taking on too much risk could easily have been dismissed as fear mongering. With strong (but now dubious) triple-A credit ratings, constant $1 per share prices, daily liquidity, strong brand recognition, and deep-pocketed parents, what was
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March 28, 2008
Executive Summary From administering aggressive interest rate cuts to providing longer-term liquidity to financial firms; from accepting non-traditional asset collateral to assisting the Bear Stearns takeover by JPMorgan Chase; this Federal Reserve is unlike any we have seen in recent history. By throwing out the rulebook of central banking, some
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March 1, 2008
For cash investors, there exists a delicate and sometimes frustrating balance between deciding to stretch for those additional 10 basis points in yield and the urge to recoil to treasuries when isolated liquidity issues arise. To make wholesale judgments of any asset class or investment sector can result in unfounded
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January 8, 2008
Executive Summary The auction market relies heavily on investor confidence. Once certain bonds were perceived to be troubled, similar securities, even those with well run programs, may see their auctions at risk. The scenario of a bond ultimately curing itself with a successful auction is unlikely. It is unrealistic to
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December 1, 2007
Amidst the financial rubble brought on by the subprime crisis, might there be havens for cash (aside from under the mattress) for the corporate treasury investor? We think so. First, let’s review what led to the flurry of recent negative headlines. Since last August, there have been large write-downs by
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November 2, 2007
As the stock market continues its volatile trend and media highlight stories of institutional investors and banks taking heavy losses from subprime fallout, the venture debt market has, thus far, weathered the storm and remains largely unaffected. This healthy market in fact, is enjoying positive growth as companies continue to
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September 1, 2007
In April 2007 increasing losses sustained by bonds with exposure to subprime mortgages became apparent. [See “The Subprime Flu,” April 2007] In the months that followed, this brought on a widespread credit contagion and took many investors by surprise. Among the hardest-hit areas was the short-term credit market that came
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