Jean-Yves Bianchi

Jean-Yves Bianchi

CAIA, Senior Portfolio Manager

Lyxor Asset Management


Jean Sayegh

Jean Sayegh

Head of Fixed Income Management

Lyxor Asset Management


It is time for cash management innovation

24 Jan 2017

Active Strategies

In a context of historically low interest rates which have shown first signs of a reversal  it is time to explore new investment strategies that reduce exposure to rising rates.

Cash management is caught in a conundrum. In a world of ultra-lowinterest rates, many investors are taking extra interest rate risk to generate performance. Yet, as the European Central Bank takes first measures to reduce quantitative easing, the likelihood of this greater risk crystallising into capital losses is increasing.

In our view, it’s time to look into innovative ways to manage cash. There is a range of new investment approaches emerging that can be used to provide the extra yield that investors seek without taking significant extra risk. Critically, they insulate investors from the possibility of rising rates. Just as all businesses innovate to adapt to changing circumstances, so cash management must do the same. It can exploit new market opportunities, apply techniques developed in other areas of asset management and take advantage of market inefficiencies. Joined together in a diversified portfolio, these specialist approaches offer the benefits of traditional cash management without the same risk to capital.

Just as all businesses innovate to adapt to changing circumstances, so cash management must do the same. It can exploit new market opportunities, apply techniques developed in other areas of asset management and take advantage of market inefficiencies. Joined together in a diversified portfolio, these specialist approaches offer the benefits of traditional cash management without the same risk to capital.


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