Wells Fargo Talks "Risk in Corporate Cash Portfolios" in AFP Exchange. The latest issue of the Association of Financial Professionals' monthly AFP Exchange magazine features an article written by Wells Fargo MD of short-duration credit research Matthew Grimes and MD of business development John Slifer entitled "Risk in Corporate Cash Portfolios." (AFP is the former Treasury Management Association, an organization representing corporate finance pros.) The article discusses corporate cash management, investment policies and the "liquidity challenges" in the "market turmoil in the second half of 2007". Grimes and Slifer write, "When investors start questioning money market funds about their holdings, it is easy to see we are indeed experiencing unusual times.... The current liquidity challenges are another example of the repricing of risk. It doesn't matter to the market if the increased risk is real, only that there is market perception of additional risk. As a result, anything that has any subprime exposure has become largely illiquid.... Auction Rate Securities have had a sterling reputation ... until recently." Finally, the pair say, "The cornerstone of investment risk management s the properly written investment policy."

Email This Article




Use a comma or a semicolon to separate

captcha image