1 min readThe FOMC made two points clear in their September 13 statement as they announced an open-ended security purchase program to keep downward pressure on interest rates: “Strains in global financial markets continue to pose significant downside risks to the economic outlook,” and “Exceptionally low levels for interest rates are likely to be warranted at least…
2 min readThe much-anticipated vote on proposed changes to money market fund regulations was called off by SEC Chairwoman Mary Schapiro just days ago after she apparently failed to persuade the “swing vote,” Commissioner Luis Aguilar, to support her proposal. Ms. Schapiro’s reforms specifically targeted the issue of shareholder risk and they included the implementation of a…
2 min readAlong with the scorching weather, July brought the hotly debated and long-anticipated proposal for money market fund reform to the hands of the SEC Commissioners for review and a possible vote. Additional regulatory uncertainty is scheduled for the end of 2012, when the FDIC´s unlimited coverage on transactional accounts is expected to expire. With two…
1 min readIn the aftermath of the 2008 credit crisis, there seemed to be just two options for investing corporate cash – government-issued or government-backed debt – allowing for capital preservation but little to no return. While the purchase of securities issued or guaranteed by the U.S. government continues to remain in favor with many corporate cash…
1 min readIn May, several Treasury conferences from Oregon to Massachusetts had well-attended sessions on investment policy design and construction. This interest may have been sparked by upcoming regulatory changes affecting bank deposits and money market funds, as the risk/reward nature of these investments is under review and likely to change. A robust investment policy enables controlled…
2 min readResults from the Capital Advisors Group/Strategic Treasurer 2012 Liquidity Risk Survey, to be released later this month, portend the shifting regulatory environment will significantly impact investment vehicle preferences for corporate cash managers. The survey results remind us that changing regulations can be a major catalyst in modifying investor behavior. After the Lehman bankruptcy, regulators deployed…
3 min readNote: Capital Advisors Group is a Boston-based institutional investment advisor that has been helping clients invest their cash assets for more than 20 years. Debt Advisors Group, the venture debt consulting arm of Capital Advisors Group, helps our clients determine their optimum capital structure, identify appropriate lenders, source term sheets and negotiate deals. Abstract The…
2 min readFebruary ushered in a sea of potential changes for corporate cash managers. Early in the month, The Wall Street Journal reported on a pending proposal by the SEC to stabilize money market funds through additional regulations. Later in the month, Moody’s Investors Service announced a total of 120 banking credits were being placed on negative…
2 min readPortfolio examinations are typical activities for this time of year as year-end audits get underway. What may come as a surprise, however, is the additional scrutiny on valuation methodology that auditors are requesting. Supporting our clients for this additional scrutiny reminds us of the benefits that may be achieved through our broader Credit/Risk Management Oversight…
3 min readThe New Year has a way of prompting us to focus on priorities and agendas for the coming 12 months and as Treasurers plan their “To Do” lists for 2012, it is helpful to identify trends and events that will shape the short-term cash management environment. A view of the potential issues that could develop…