2 min readAs many recipients of our monthly newsletter are aware, Capital Advisors Group serves a wide range of clients, from private to public companies with small to large cash balances and institutions of all stages in between. Before you read further I’d like to stress that, given the current state of the credit markets, we’re stressing…
2 min readOver the course of the past year there have been a slew of government programs developed to prop up the credit markets and spur economic growth. The programs have had various impacts, from stabilizing money market fund flows, to providing liquidity support for certain asset classes and direct credit support for certain targeted credits. Still,…
2 min readEmerging signs of stabilization in the credit markets, while a welcome sign, should not result in complacency among corporate cash investors. Risk levels are still elevated in several cash investment sectors and the recent government bailout and restructuring of CitiBank demonstrate that surprises in the banking sector are likely not over. And while Citi’s “too…
2 min readThere’s a very good chance that future generations will look back upon 2008 and remember it as the year of this century’s most alarming financial meltdown, on par with the crash of 1929. With the benefit of hindsight, it’s very likely the Fed action through the end of 2008 will be critically viewed and some…
2 min readSince August 17, 2007 there have been more than 40 separate measures announced by the Fed and Treasury designed to stabilize the credit markets. The most recent programs follow a similar remediation course to that of past credit bubbles that required direct government investment in banks and deposit guarantees by sovereign governments. These recent measures,…
6 min readRecent credit market events have stress-tested corporate cash portfolios more than at any time I can recall in my 28-year investment career. These events are shocking in scope and have threatened our financial system in ways not seen since the Great Depression. Because it’s so easy to “lose sight of the forest” in this unprecedented…
1 min readI understand that not all recipients of our monthly newsletter would have been affected by the meltdown of the auction rate securities market; however, the structure of the recent broker-dealer/SEC settlements may pique the interest of many corporate treasurers. Of specific interest to us is the manner in which institutional investors have been largely left…
1 min readIn real estate investing, we all know the old adage is location, location, location. And, as an extension, the three most important factors we’re looking to for signs of stabilization in the credit market are housing, housing, housing. Over the past 12 months we have seen national home prices plummet 15.5%, existing home sales decline…
1 min readIn light of the difficult credit market of late and the recent emergence of a small yet hopeful glow at the end of the tunnel, this month we wanted to cover a topic that can help with a question that may be on the mind of many corporate treasurers: How do we get back on…
1 min readNow 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 futures contract. These indications, along…