The Importance of Structured Liquidity in Stable Value Portfolios
Authors and Contributors
BNY Mellon Asset Management North America - Stable Value Team
“Cash is king” is an anecdotal refrain often heard in the world of investing. Generally, this statement refers to portfolio liquidity and the notion, all else equal, that the more liquid the portfolio the better, especially in times of market stress. This drives investment managers to seek the increased safety and flexibility of cash and cash equivalents despite relatively low returns. The stable value asset class is no different. In fact, one could argue that the need for liquidity in stable value funds today is perhaps now more imperative than ever.
On January 31, 2018, The Boston Company and Standish merged into Mellon Capital to form a combined entity, BNY Mellon Asset Management North America Corporation. Effective January 2, 2019, this entity was renamed Mellon Investments Corporation.