BNY Mellon has published a new study exploring how actively managing the treasury function can create yield enhancement opportunities for fund managers. It has shared the paper with Traders Magazine.
Traditionally the treasury function has been thought of as a back office function. This new paper – which was jointly developed with cash management platform Hazeltree – argues that if treasury is actively managed, unallocated cash balances spread across clearing houses, counterparties, collateral accounts can be optimized and invested to create additional yield for funds and their investors.
The paper includes two case studies which demonstrate that if cash balances are managed most efficiently, yield pickup of as much as 65 basis points is achievable.
You can find the new paper on bnymellon.com right here.
