Repurchase Agreements
The Money Fund Alternative for Corporate Treasurers and Passive Sweep
Accounts
Cash Managers and Corporate Treasurers that find the security of a Money
Fund has greater importance over yield can now have both. SSS’s AAA
rating gives investors the same credit characteristics of a Money Fund
without the loss of yield due to a money fund’s high expense ratios
which average 35 basis points.*
In the current interest rate environment, Money Funds will extend
the Weighted Average Maturity of their portfolios in order to create higher
yields. With expense ratios averaging 35 basis points, Money Funds need
to take incremental risk in order to generate the yield necessary to stay
competitive with other Money Market Instruments. In a rising interest
rate environment, the longer the Weighted Average Maturity of the portfolio,
the longer the fund will trail the returns of Repurchase Agreements.
* (iMoneyNet survey of the twenty largest Money Funds).
Please call 212-824-0738 for more information
