1 min readFew years in recent memory rivaled the events of 2016. The Brexit vote and Trump’s win confounded pundits and prognosticators. Multiple terror attacks and a migrant crisis roiled a fractured European Union, and the United States was rocked by ongoing racial tensions and acts of home-grown terrorism. But, in spite of these tumultuous events, we…
2 min readAbstract Policy, geopolitical, and idiosyncratic risks are real under the new administration. It is too soon to tell if the next four years will be friendly to cash investors. The economic drag from trade barriers and immigration control may offset some benefits from a federal stimulus and a pro-business Republican agenda. A potentially bifurcated outcome…
1 min readAbstract Important regulatory changes to institutional prime money market funds are forcing institutional cash managers to look elsewhere. While ultra-short bond funds hold promises, they exhibit many of the same drawbacks of commingled vehicles. A well-researched and well-structured separately managed account may overcome these drawbacks while delivering comparable or better benefits. Commingled vehicles and separate…
2 min readAbstract An Industry at an Inflection Point – Outflows from prime funds have been more severe than forecast. Fewer funds and fewer fund companies are left in the prime space. While stable NAV government funds will likely continue to flourish, the appeal of prime funds has diminished. Diminished Yield Potential – The anticipated higher prime-to-…
1 min readThe day we’ve all been anticipating is here. SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates are going into effect at institutional prime money market funds today. But markets have already started to answer our questions about the impact of the changes. And this month’s Capital Advisors Group research report suggests that…
1 min readIntroduction Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity Risk Survey of 130 treasury professionals by Strategic Treasurer and Capital Advisors…
1 min readAre you moving most of your cash to the sidelines? With new and uncertain risk profiles looming for prime money market funds when SEC-mandated floating net asset values (NAVs), redemption fees and liquidity gates go into effect Oct. 14, many corporate cash managers are defaulting to traditional “safe havens.” More than three quarters of the…
5 min readNew Liquidity/Risk Survey Identifies Opportunity Costs Associated with Bank Deposits and Government Securities Many corporate treasurers are keeping their cash in bank deposits, U.S. Treasuries and government money market funds as they assess the impact of ongoing reforms that are changing the risk and liquidity profiles of prime money funds. According to the 2016 Liquidity…
1 min readAs seismic events go, Brexit ranks right up there. It was unpredicted, and its disruptive influence quickly radiated out from its London epicenter. As the news spread, commentary from a sea of pundits flooded the market with various macro views of the potential damage Great Britain’s exit from the Euro zone would cause. While many…
3 min readAfter an initial shock, global financial markets calmed down in the week following the June 24 vote by the British electorate to leave the European Union (Brexit). As leaders from the United Kingdom and EU began a process of separation that could take several years, the immediate impact on institutional cash investors was only mildly…