14 min readCo-authored: Alexander Goldman Abstract The inclusion of A2/P2 commercial paper (Tier-2 CP) in institutional cash portfolios may help improve income potential and diversify risk. Data suggests that Tier-2 CP offers meaningful yield enhancement relative to comparable benchmarks and Tier-1 CP. Following the SEC’s Rule 2a-7 money market fund reforms, direct investment in Tier-2 CP has…
4 min readThe U.S. auto industry is entering a period of uncertainty due to the looming threat of tariffs on Canada and Mexico, which could have a deleterious effect on vehicles and parts imported from both countries. As of March 11, President Trump has initiated tariffs of 25% on Mexico and Canada, with a temporary reprieve until…
5 min readFollowing the collapse of Silicon Valley Bank, Signature Bank, and the sale of First Republic, there’s been an increasing interest by regulators to reform the US deposit insurance scheme to fully protect the banking system from future bank runs. The Perfect Storm for Bank Runs Panic among deposit holders lit the initial spark that led…
4 min readHow auto manufacturers are developing strategies for improved ESG ratings Over the past several years, auto manufacturers have been increasingly focused on reducing carbon emissions via improving vehicle fuel efficiency and transitioning their product lines to fully electric vehicles. This increasing focus isn’t unfounded: according to the International Energy Agency (IEA), the transportation sector accounted…
3 min readThe global economic landscape and cash investing have experienced sizeable market shifts in the past year due to the ongoing disruptions to supply chains, geopolitical tensions with the conflict in Ukraine, rising inflation across the globe and the Federal Reserve’s interest rate tightening cycle. Institutional cash investors will need to monitor all these ongoing disruptions…
3 min readThe auto industry has been one of the hardest hit sectors since the pandemic began. In April, US auto sales hit a low of 8.6 million vehicles, down from 16.8 million at the end of February. Moody’s expects vehicles sales to fall at least 20% in 2020 and will take several years to return to…
3 min readThe Earnings Credit Rate (ECR) has been a successful tool used by banks to lure corporate depositors during the low interest rate environment, but shouldn’t be expected to keep pace with rising interest rates. Banks offer ECRs to offset bank transactional fees for non-interest bearing deposits accounts, effectively acting as a conduit to hard interest….