Cash is often what’s left over after investment decisions have been made. For the past decade plus, rates were very low, and cash was the forgotten portion of a portfolio. However, the world has changed. While the current market environment can best be described as uncertain, interest rates are high and look to stay that way for some time to come. With investors pouring record sums of money into cash-related investments, they are now paying serious attention to their cash. John Donohue, Head of Liquidity Management and RBC Banking Channel at RBC Global Asset Management, ties in fresh perspectives related to liquidity markets.
Watch time: 49 minutes 37 seconds
- Investment options for cash have expanded beyond plain vanilla.
- Perfectly timing the market isn’t possible. It’s best to define a process and have discipline.
- Develop an Investment Policy Statement that is a living document.
- There are interesting opportunities to maximize return, while preserving capital in a risk averse way, including: treasuries, agencies, corporate bonds, commercial paper, and asset backed securities.
- Our overwhelming view is that rates are going to be higher for longer.