2 min readAmid expectations that the Fed will soon complete its about-face from hawk to dove with its first rate cut since 2008, cash investors are looking as hard as ever for relatively safe short-term investments capable of delivering decent returns. And many are turning to a market that in the past they often overlooked—corporates with BBB…
13 min readCo-authored by: Matthew Paniati, CFA® DOWNLOAD FULL REPORT Abstract BBB-rated debt continues to offer new possibilities for cash investors. Though it involves taking on incremental credit risk, allowing the purchase of these securities may help alleviate supply shortages while also offering additional return opportunities. Should investors investigate adding BBB names to their portfolios, we recommend…
2 min readEquity managers concerned about the long-term health of their investments have long had to take environmental, social and governance concerns into account. So-called ‘ESG’ investment guidelines help them steer around all kinds of management crises that might lay waste to returns in otherwise pristine equity portfolios. Until recently, however, fixed-income liquidity investors managing short-term portfolios…
14 min readDOWNLOAD FULL REPORT Abstract The popularity of responsible investing has extended to the fixed income and liquidity management fields in recent years. Incorporating environmental, social and governance (ESG) issues in cash investment decisions makes sense as part of overall credit risk management. In addition to challenges related to disclosure, criteria, measure and verification, liquidity portfolios…
2 min readMoney market funds have become more resilient since SEC reforms transformed the industry with higher credit, liquidity, transparency, and oversight standards. The 2008 bank run that broke the buck in the old prime funds is, for now, just a bad memory fading into the rear view mirror. But unanticipated side effects of those historic reforms…
17 min readDOWNLOAD FULL REPORT Abstract The 2014 money market fund reform brought forth drastic change to the corporate cash management landscape, significantly impacting investors, issuers and fund sponsors. While there is little doubt that money market funds are more resilient following the implementation of the reform’s higher credit, liquidity, transparency, and oversight standards, it also had…
2 min readThe Fed took more than a few people by surprise several weeks ago when it suddenly signaled there would be no interest rate hikes in 2019. Especially when it pointed to “slower growth of household spending and business fixed investment.” Then, in seemingly no time at all, the yield curve inverted. Anyone will tell you…
13 min readDOWNLOAD FULL REPORT Abstract The March Federal Open Market Committee (FOMC) decision was a major market event that directly resulted in an inverted yield curve. The Fed’s interest rate and growth outlook change echoed other recent moves by central banks that may indicate the end of a tightening monetary cycle. The inverted curve may be…
2 min readWhat a difference a year makes. Every January we publish a report analyzing top trends to monitor in the coming year. Last year, we noted the relative calm in short-term debt markets, a full-employment economy boosted by tax-cut legislation, and expectations that the Fed would continue its series of slow, steady and predictable rate hikes…
14 min readAbstract We have identified the Fed and a flattening yield curve, trade wars and a global slowdown, and Brexit and other uncertainties as the three main themes to watch in 2019. Compared to 2018, we think 2019 will be a bit more challenging for short-term liquidity investors. A flatter yield curve may attract more non-traditional…