2 min readIf location, location, location are the buzz words of real estate, then transparency, transparency, transparency is the latest catchphrase in corporate cash investing. Having a transparent visual on investments can be as valuable as being able to read your own MRI, but if you don’t know how to interpret the risks from the data, then…
2 min readAbstract AAA-rated fixed rate credit card ABS may be viable investments for corporate treasurers. Transparent asset collateral, servicer quality, potential sponsor support, relatively short maturity schedule, and soft-bullet structure are some of the sector’s advantages over other forms of ABS. The credit card ABS sector stood the test of time without significant ratings implications during…
1 min readIt’s human nature to generalize with broad strokes; one bad apple can spoil the whole bunch, as the saying goes. Our industry is filled with generalizations, from panning all insurance companies even when Berkshire Hathaway shines as a pillar of credit strength, to running from all Euro credits even when select Euro Financials are some…
1 min readManaging corporate cash with the objectives of capital preservation, liquidity, and return is often thought of as a staid and steady endeavor. However, in reality, buy lists need to be actively adjusted to preemptively manage credit risk. Over the last 12 months, credits have been affected by, among other things, earnings reports, regulatory reform, and…
2 min readAbstract Credit risks in prime money market funds stem from investments in non-government securities. In reviewing credit concentrations in a group of AAA-rated prime funds representing 50% of industry prime fund assets, we found that fund managers improved credit and liquidity positions by boosting investments in U.S. Treasuries and repurchase agreements. As of December 31,…
2 min readIntroduction As far as financial weather conditions go, the past few months represented very unusual patterns for financial regulators, who broke the usual summer doldrums with a number of regulatory gales. While the new regulations will likely have a profound and lasting impact on our financial lives, most of us are simply overwhelmed by the…
2 min readThis past September 15th marked the second anniversary of the Lehman Brothers bankruptcy filing and the start of a long, cold hibernation for many institutional treasurers. Certainly, much has transpired in the last two years to return stability to the markets. This summer saw the sweeping Dodd-Frank financial reform bill signed to law, new international…
2 min readAbstract Credit concerns have once again taken center stage as the treasury community closely monitors its cash investments. These fresh concerns are relevant to U.S. cash and short-duration investors because prime money market funds are major investors in European financial debt. Approximately two-thirds of commercial paper and one half of jumbo bank deposits available to…
3 min readBackground Money fund due diligence is among several topics du jour with corporate investors. Prior to the Reserve Primary Fund “breaking the buck” in September 2008, loss of principal and liquidity in a money market fund was barely a concern for most corporate cash investors. Much has occurred in the fund industry since then, and…
2 min readRegular readers of our monthly newsletter may have noticed that we’ve paid particular attention to money market funds of late. It’s true. However, as you’ll see, this is another example of our firm’s philosophy to consciously and consistently seek to challenge conventional thinking about cash management. We understand that while some investors may still hold…