In this article from Treasury Today, “Continued allocation to money market funds suggests that their appeal goes beyond representing a safe haven in times of economic volatility.”
Kim Kelly-Lippert from American Honda, says:
“For day-to-day management of the funds, we compare and review the metrics of each fund and make the decision on where to purchase or redeem,” says Kelly-Lippert. “We trade through the ICD Portal, which is integrated through API to our treasury management system Kyriba and the upload is fast and easy which creates higher efficiency for trading funds. With the upload, all our trade tickets, positions and reporting are updated automatically.”
The company also uses the information provided on the portal for data reporting and analytics, running reports and reviewing the detailed portfolio holdings information and fund metrics provided by each fund group.
“We take an even deeper dive each month into the portfolio holdings by using the reporting information from the portal, which combines money market fund holdings and direct holdings where we can look at our overall exposures and underlying credits,” says Kelly-Lippert, who adds that the company is comfortable with its current allocation.
“With the choice of using government money market funds it is not really a credit issue, but more about rates, portfolio structure and relationships,” she says.
Many corporate treasurers are taking a more critical look at their investments in the wake of last year’s US regional banking crisis with an eye towards heavy concentrations with individual counterparties suggests Sebastian Ramos, EVP of ICD Portal.
