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What a &%*$ Mess on Wall Street!!! | CFO Lounge

What a &%*$ Mess on Wall Street!!!

Mon, Sep 15, 2008

Down to Business

If you don’t have a Treasurer or a third party cash manager already, now is the time to start seeking advice! Even sticking your cash in a MMF has significant risk in today’s market…the underlying securities in many of these prime funds include financials or dirty commercial paper from struggling entities. Really understand your investments, look at their composition, understand their balance sheets. Talk to someone. Don’t pretend to be a seasoned Treasurer if you’re not and end up stuck in a fund you can’t get out of just because you get an additional 30 bp lift. Don’t be a schmuck!

Commercial banks (Deutsche Bank, Credit Suisse, Morgan Stanley, Wells Fargo, etc.) offer free investments in a wide variety of MMFs and with as little as $3-5 million you can set up an account. Fees for investing in securities range from a few bps to 15 bps of your portfolio balance depending on how much you are investing. But generally MMF deposits are FREE!!! Not only are they free but while your money is in these funds you can acquire top notch investment advice for what to do with your money after the market corrects. Prices are always negotiable…so do yourself a favor.

This post was written by:

Chad Cohen - who has written 51 posts on CFO Lounge.

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