Press Releases Archives: November, 2012

Crane Data President Peter Crane will join to Join StoneCastle Cash Management Brandon Semilof and M.D. Sass Hugh Lamle to present a comlimentary AFP Webinar entitled, "Managing Cash, Liquidity & Risk: What Now? Beyond Unlimited FDIC Insurance" on Wednesday, November 28, from 3:30-4:30pm (EST). The description says, "In response to the scheduled expiration of TAG and money fund reform, this webcast is an excellent forum for treasurers to discuss the current state of cash management. The webcast will include the most up to date news and insights regarding the expiration of unlimited FDIC insurance and Money Fund Reform. The session will also introduce alternative cash management vehicles and strategies being utilized by treasurers."

Reuters writes "As Fed focuses long term, high short-term rates weigh on lending", which says, "The Federal Reserve's efforts to lower U.S. interest rates and increase borrowing to stimulate the economy may be running into a problem of the Fed's own making: the stubbornly high cost to borrow short-term funds is constraining the ability of banks to make cheap loans. The Fed has been selling short-dated Treasuries in order to finance its purchases of longer-dated government bonds. It hopes this will reduce longer-term interest rates and boost borrowing needed to raise spending and reduce the jobless rate. The sales have pushed up the cost to borrow in the vital $5 trillion repurchase agreement (repo), even though other borrowing rates have declined, as banks struggle under the weight of absorbing the short-term debt." The article adds, "Money funds increased their repo lending to record levels in July and August, where the loans topped 25 percent of the total assets of taxable money funds for the first time, according to data firm Crane Data. At the same time as the repo loans increased, loans made to government agencies that guarantee mortgages and to companies through commercial paper declined, Crane data show. Repo loans fell in September due to quarterly "window-dressing", but "October data will no doubt show a rebound," said Peter Crane, President at the firm."