The financial crisis has transformed corporate perceptions of liquidity and risk, and treasurers are now seeking more secure, diversified and liquid investments for their short-term cash flow. Mark Allen explains the new industry proposals for complete transparency over what a Money Market Fund comprises and why MMFs are potentially the ideal replacement for short-term deposits.
The article also describes why the proposals are needed, and how they aim to both strengthen the resilience of MMFs in a crisis and ensure fair treatment of investors whilst still providing historically reliable and convenient means for them to achieve their security, liquidity, and yield demands. Additionally, the differences between 'Short-term' MMFs and 'Regular' MMFs under the new proposals are analysed in order to show how the proposals will make it easier for investors to make informed investment choices.
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Treasury Management International showcases topical, pragmatic solutions and strategic insights on treasury, cash management, foreign exchange and other issues affecting treasury and financial professionals, together with treasury and finance news, education and opinion. With real-life treasury management experiences and case studies at its core, TMI provides valuable material for all practitioners - from experienced treasurers and CFOs to those new to the profession.
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