2 min readMany institutional cash investors found themselves on the sidelines on October 14, when prime money market funds finally instituted SEC-mandated floating net asset values, optional redemption fees and possible liquidity gates. Confronted with an entirely new risk/reward equation, many investors are investigating the alternatives, either considering making their own direct investments or exploring working with…
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 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…
1 min readWith the October 14 imposition of floating net asset values (NAVs) on prime money market funds rapidly approaching, many institutional cash investors are taking a long, hard look at their portfolios. In addition to new prime funds with fundamentally different risk, return and liquidity profiles, investors are also coping with persistent low rates on Treasuries…
1 min readAbstract This introductory product brief discusses insured deposit programs’ potential safety, liquidity, yield, diversification and ease of use benefits. It also cautions on their servicer risk, liquidity, size restrictions, risks related to FDIC payoffs and sustainability. Such vehicles may be well suited for moderate-sized accounts with government mandate that desire higher yield potential than government…
1 min readOn October 15, institutional cash investors entering the uncertain world of floating net asset values (NAVs) on institutional prime money market funds may be looking for alternative liquidity vehicles. While government money market funds may be the first obvious choice because they will still offer stable NAVs and no redemption fees or liquidity gates, increased…
2 min readAbstract We leave our readers managing intuitional cash portfolios with the following takeaways: Brexit will likely have a major impact on the UK, politically, economically and financially. It is less so on the EU and the US. Look for short-term volatility and maintain sufficient liquidity as market liquidity may be less predictable than before. Expect…
4 min readThere has been an increasing amount of coverage in the financial news media recently about the United Kingdom’s upcoming referendum regarding membership in the European Union (EU). On Thursday, British citizens will vote on the question: “Should the United Kingdom remain a member of the European Union or leave the European Union?” Should the Leave…
2 min readIntroduction There has been an increasing amount of coverage in the financial news media recently about the United Kingdom’s upcoming referendum regarding membership in the European Union (EU). On Thursday, British citizens will vote on the question: “Should the United Kingdom remain a member of the European Union or leave the European Union?” Should the…