In March 2020, Covid-19 shuttered global economies. Most Central Banks, including the Federal Reserve, moved their target bank rates to zero. High- grade, short-duration fixed income assets, like Treasury bills, municipal notes, and money market funds, currently yield close to zero.
Money Market
01. Сhallenge
Most of our clients allocate a portion of their assets to safe and liquid securities like Treasury bills and money market funds.
- These assets now yield zero
- Money Market Reform increased the risk that mutual funds may restrict liquidity
02. Solutions
ASA developed techniques and technology to access high-grade assets yielding 50 to 75 bpts above the market. With this technology, ASA can create a customized money market portfolio for each client. We buy only highly rated securities with maturities less than 360 days for money market portfolios.
03. Results
ASA is now managing approximately 400 million dollars in this strategy.
