1 min readThe evolution of risk management practices has been impressive over the last quarter century. The industry has gone from risk reports printed on curly fax paper to integrated counter party risk management systems. As practices have evolved, the complexities of risk management have evolved as well. To capture these trends, Capital Advisors Group along with…
1 min readRegulatory reform has been a constant presence in the world of cash investments over the past five years, and it’s had a significant impact on credit risk, supply and return. As the dust from the credit crisis began to settle, most short-term investments including bank deposits, money funds and commercial paper were, by necessity, wrapped…
2 min readSubtle language changes to the Fed’s official statement and comments from Janet Yellen’s first press conference as Chair shifted the anticipated timing of a Fed funds rate hike to the first half of 2015. The dot chart that maps FOMC members’ interest rate predictions showed that the majority expect the first rate hike to come…
1 min readMoney market funds and bank deposits have been traditional sources of liquidity for corporations. However, the unlimited FDIC guarantee on non-interest bearing deposits expired more than a year ago and money market funds have come under scrutiny from both investors and regulators. With the SEC scheduled to announce its final regulatory changes this year, which…
1 min readThis past month we wrapped up our third webinar on counterparty risk management, finishing the three part series we began last October. Our goal of the webinar series, hosted by ourselves and Strategic Treasurer, was to raise awareness of the challenges treasurers face in managing counterparty risk and, as a thought leader in the industry,…
1 min readAs 2013 closes and we pen our annual “Three Challenges in the Coming Year” research paper, I thought that a self-evaluation of our previous year’s views would make for an interesting exercise. Last year at this time, we cited acceleration in money fund reform, scarcity of eligible investments and the low rate environment as the…
1 min readTransparency is the new buzz for corporate treasury professionals in their constant pursuit to understand and track underlying risk. Like the shifting channels of the Mississippi River, credit exposures in investments and counterparties present continuously variable hazards to navigation. The credit crisis intensified treasurers’ efforts to understand their exposures, but too often formal reports were…
1 min readTransparency is the new buzz for corporate treasury professionals in their constant pursuit to understand and track underlying risk. Like the shifting channels of the Mississippi River, credit exposures in investments and counterparties present continuously variable hazards to navigation. The credit crisis intensified treasurers’ efforts to understand their exposures, but too often formal reports were…
2 min readIn October, short treasuries were whipsawed by political dysfunction with the threat of an “operational interruption” to Treasury bills that caused yields to soar above 50 basis points for October 17 maturities. This volatility followed on the heels of a Treasury rally in September which was induced by the Fed’s failure to announce a tapering…
2 min readRisk management is core to every treasury operation whether the organization is a biotech in phase III trials or a global Fortune 500 company. Large or small, an organization’s goals should be centered on selecting and monitoring exposures that are appropriate for its risk tolerances. Granted, staying consistently true to those tolerances is significantly more…