Navigating Investing in Today’s Markets with Jeffrey Weaver
Head of Global Liquidity Solutions, Jeffrey Weaver, discusses the evolving role of cash in portfolios, highlighting strategies for positioning liquidity in today's market.
Transcript
Cameron Pickoski: We're here today at our National Sales Summit in Fort Lauderdale, where the theme is “Charting the Course.” So, with that in mind, let's talk about how you and your team are investing in today's markets. Jeff, how has the role of cash evolved in portfolios over the past few years, and how are you and your team positioning liquidity strategies today?
Jeffrey Weaver: Thank you, Cameron. Cash has been really exciting. You know, after many years of being at 0%, we finally got to a point where it really represented value for people in their portfolios—not only retail clients but also institutional clients. Rates are still high at the front end. They're coming down. They're probably getting close to an end of an easing cycle here, but they still represent value. And as long as rates stay where they are—short-term rates are right around 3.5%, probably going lower—there are still relatively high real interest rates. That represents value for our clients. We've seen retail balances explode in portfolios, and then in institutional, there's always a constant need for liquidity. So, I think our clients continue to enjoy the yields that are there. How are we positioning our portfolios? We are slightly extending them. We want to lock in these yields today with the expectation that yields will continue to move lower. We do encourage our clients to look beyond money market funds and extend out the curve a little bit.
Key takeaways
- Cash as a Valuable Asset: After years of near-zero rates, cash now can offer meaningful value for both retail and institutional portfolios.
- Positioning for Lower Yields: Portfolios are being slightly extended to lock in current yields, anticipating that rates may continue to decline.
- Extending along the Curve: Weaver and his team are positioning their portfolios to slightly extend out the curve, anticipating that yields will continue to trend lower.
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