Fitch questioned 68 European treasurers on the instruments they use for cash investment, with a particular focus on MMFs, and found that many have not adequately anticipated the impact of a potential regulatory move to VNAV.
Managing cash in separately managed accounts (SMA) should be considered by institutional investors as a real option where the benefits of customisation can be realised.
SunGard recently commissioned a study among corporate treasury professionals to understand corporate attitudes to cash investment, including strategic cash holdings, asset allocation, investment policies and transaction execution. We outline some of the key findings.
Separately managed accounts can provide an attractive alternative for treasurers looking to generate higher yields on their excess cash than are available from money market funds.
The Editor discusses some of the current issues in the money funds industry, and how corporate investment behaviour is changing.
Investors need to be aware of the decisions that their providers are making in respect to credit risk so transparency is more important than ever before.
From a number of perspectives it has become arguably less likely that Credit Rating Agencies (CRAs) will continue to play as significant a role for the money market industry as they done up to this point.