October 24, 2019
Safety First: Investment Managers Reduce Risk, Shorten Duration
Cash investment managers are shying away from risk and heading toward safety and liquidity. The vast majority of members at recent NeuGroup meeting of cash investment managers expressed very little desire to increase the risk or duration of their portfolios to boost yield. Indeed, their priorities—in order—may be best expressed as SLY: safety, liquidity, yield. The inverted curve. One key factor in this low-risk stance was the inverted or flat shape of the yield curve at the time of the meeting.…