1 min readAs a business looks for strategic opportunities to deploy its cash, maintaining liquidity in its cash investment accounts is crucial. Money market funds have been the traditional answer to liquidity, but their engineered liquidity has come under scrutiny from both investors and regulators alike. Potential regulatory changes announced by the SEC on November 7 may…
3 min readAbstract For four decades, many corporate treasurers successfully employed a hands-off approach to managing the money market funds in their portfolios. However, recent market events revealed the danger in this approach. Like other investments, money market funds must be evaluated to determine how they fit into a firm’s overall risk management strategy. A money market…
2 min readAbstract Separate accounts may offer greater return and reduced credit risk compared to prime money market funds. By examining current and future liquidity needs and the potential for significant deviations from cash flow projections, corporate treasurers may construct portfolios with direct investments in high-quality credits that provide current, future and emergency liquidity – and still…
3 min readAbstract Treasury rates may remain at zero or negative levels for a prolonged period and additional banks may begin to charge “extraordinary deposits” fees, pushing depositors back into the money markets. It just may be a matter of time before many, if not most, treasurers are confronted with negative portfolio yield. Private and public sector…
1 min readThe ground shook under Washington twice in August, registering 5.8 on the Richter scale and AA+ on the ratings scale. Mother Nature produced the earthquake and Congress, unable to craft a fiscal plan meaningful enough to maintain America’s AAA rating, triggered the ratings tremor. Aftershocks included a string of poor economic data suggesting the current…
2 min read“Change is the law of life. And those who look only to the past or present are certain to miss the future.” — John F. Kennedy Abstract Collateralized commercial paper (CCP) made its debut last November to institutional cash investors. This new structure allows investors to purchase commercial paper from entities conducting term repos with…
2 min readReflecting back on the 20 years since Capital Advisors Group was founded, I am amused by the numerous security types that have been created for corporate treasurers and short-term cash portfolios. These new security types, and our ensuing risk evaluation of these securities, have been part of the challenge and excitement that has fed our…
3 min readMeet the New Year, same as the old – with a twist. In preparing our treasury investment strategy outlook for 2011, it seems there isn’t much we have not already seen or experienced in 2010 – an exceptionally low interest rate environment, the Eurozone sovereign debt crisis, and a wave of financial regulations. Indeed, we…
1 min readJanuary marks the beginning of the third year since the 2008 credit crisis and the third year of consecutive growth of assets under management here at Capital Advisors Group. For this I am thankful to our clients and all the investment professionals here at CAG. Our economy enters 2011 amidst the backdrop of record economic…
3 min readIntroduction As 2010 draws to a close, we cannot help but take note of the sea change in how corporate treasurers are managing their cash portfolios since the capitulation of the financial markets in September 2008. If we characterize 2008 as the year of “shellshock” and 2009 as one of “bunker mentality,” 2010 clearly is…