We SECond this change
Perhaps because the US Securities and Exchange Commission (SEC) appears to impact the public less than other US agencies, its cost-cutting efforts mandated by the Trump administration have largely been overshadowed. But the SEC is in the midst of a sea change beyond the trimming of staff, and we welcome it. Recall its mission is, […]
Beneath the surface: a deep dive into liquidity
Quick links What would fewer rate cuts from the Fed, and other central banks, mean for liquidity portfolios in 2025? What is your outlook for the UK/eurozone liquidity market, versus the US? Can you explain how rates are determined for liquidity portfolios and how that differs from the way banks use administered rates? How can […]
Don’t be distracted by the Fed drama
We want inflation to fall while the economy and labour market remain strong. Everyone deserves this, and it’s the reason the US Federal Reserve decided last week to pause its rate-cutting cycle, leaving the fed funds target range at 4.25-4.50%. But investors in liquidity products have benefited from the elevated interest rates and should continue […]
A gorgeous vista for cash managers
After a year of ever-changing clouds, monetary policy looks clearer in 2025. The Federal Reserve seems to finally have realized it miscalculated in September by slashing rates. Inflation had already plateaued and the labor market was weakening, but hardly weak. Faced with a strong economy, officials have wised up to the reality that policy must be […]
Money markets hit record high
Records, as they say, are made to be broken. But some seem so out of reach we don’t pay attention to them until they are nearly upon us. Think baseball legend Cal Ripken’s consecutive games-played streak, US swimmer Katie Ledecky’s gold medals or basketball star LeBron James’ career points. That’s the case with the record […]
Another banner year for liquidity?
2025 Outlook
Fuzzy picture
A common misconception about money market products is that they are only concerned with short-term economic developments because daily liquidity is a defining feature. But cash managers seek to gain higher yields than deposit products by investing across a longer time horizon, often out to a year. Noise in the data and news is no […]
Your Questions Answered: managing cash and liquidity
Why do people choose Federated Hermes to manage their cash? Video transcript Investors choose Federated Hermes to manage their cash for many different reasons, one of which is we’ve been a leader in the industry since it began. Money markets began in product form, from a money market fund standpoint, back in the mid 1970s […]
Sky high
The Chicken Little1 predictions that the US Federal Reserve easing cycle would lead to an exodus of assets from liquidity products have been proven wrong. Money market funds across the industry alone have experienced inflows of around US$150bn since the Fed cut rates by 50bps in mid-September to a range of 4.75-5%. It’s another case […]
A falling rate environment
Video transcript In a falling rate interest environment, it’s actually on a flow basis, from an assets under management standpoint, a positive situation in the marketplace for money market funds. Despite what has been thought of from a media perspective as being a wall of cash that will start to exit money market funds in […]
