However, over the last decade, so-called ‘active treasury management’ has been pioneered by a handful of the top fixed income funds.
Doing so, they are generating between 30 and 85 bps of additional return directly from treasury activities.
How does Treasury drive Alpha?
There are two sources of treasury alpha: unencumbered cash, and encumbered cash. We explore how both of these can give firms an edge.
Active treasury managers have implemented 3 key processes to enhance their funds’ liquidity in times of stress. We explain what they are.