Liquidity solutions

We look at the similarities and differences between covered bonds and asset-backed securities and explain the important role both asset classes can play in liquidity funds.

Unfairly cast as a pariah after the financial crisis, asset-backed securities have shown their true mettle during the COVID-19 pandemic. Investors in liquidity products should take note.

Money market funds can play an important role in helping investors manage capital and liquidity during stressed market conditions, but their potential to provide yield should not be overlooked.

There are few areas of life that COVID-19 hasn’t impacted and credit markets are no exception. Mhammed Belfaida explains how the flattening of credit curves has revealed a surprising anomaly.

While ‘ESG’ was becoming a buzzword in long-term holdings, environmental, social and governance (ESG) factors remained largely irrelevant for short-term investments such as liquidity. Yet as the concept has gained familiarity, investors have realised ESG factors can impact performance in the short as well as the long run.

In today’s ‘lower for longer’ interest rate environment, building a cash strategy that can offer investors an enhanced return, capital preservation and liquidity seems like an extraordinary challenge. Caroline Hedges, Global Head of Liquidity Portfolio Management, and Tony Callcott, Head of Pan-European Liquidity Client Solutions, have good news.