Keeping Cash Simple

Following the global financial crisis, regulators and legislators ushered in changes to address systemic risks in the short-term liquidity markets—Basel III, Dodd-Frank, Rule 2a-7 for US Money Market Funds and money market reform is now on the horizon in Europe. As a result, traditional cash investments may not be available, recognizable or offer competitive returns. Investors are wondering: Why is cash now complicated?

Recently our Liquidity Solutions team from Goldman Sachs Asset Management (GSAM) sat down to discuss the impact of money market reform.

The panel included David Fishman, Head of GSAM Liquidity Solutions, Kathleen Hughes, Head of GSAM Liquidity Solutions Sales, Jason Granet, Head of GSAM International Liquidity Portfolio Management and Christina Kopec, Head of Product Strategy for Fixed Income and Global Liquidity.

What is Cash?

Cash means different things to different types of investors. Regardless of how an investor defines cash, it is important to remember that it is always somebody else’s liability. Panelists discuss the definition of cash and how returns are dependent on the market environment.

What is Cash?

The Changing Liquidity Landscape

Investors are used to seeing positive returns, but recently rates have been close to zero, or even negative in some regions. Global central banks are pumping money into the central banking system, but where is all of that money ending up on balance sheets? The panelists discuss Basel III & other bank regulations, the global timeline of money market reform and the ‘trilemma’ today’s investors face.

The Changing Liquidity Landscape

Bringing it All Together: How Regulatory Reform Impacts Investors

Suddenly, investors are faced with unexpected catalysts, forcing them to rethink how they invest their cash. Panelists discuss how regulatory changes force financial institutions, corporations and private individuals to seek opportunities through precise management.

Bringing it All Together: How Regulatory Reform Impacts Investors

Negative Rates

Investors are now facing a new reality: they may have to pay someone to keep their cash. Panelists discuss how negative rates have changed market perspective and how clients have actually responded.

Negative Rates

What Should Investors Be Doing?

All investors need to revisit cash and re-evaluate their short-term cash goals. Panelists discuss how both individuals and institutions need to think about cash as a more traditional asset class.

What Should Investors Be Doing?

Related Ideas

Keeping Cash Simple

Our thought leaders discuss the impact of global reform on liquidity investments.

May 2016

Prime Time to Rethink Prime Funds

The world of money market funds is in a state of flux. Cash and liquidity investors are examining new regulations taking effect in October 2016 to see if their investment decisions and practices need rethinking.