Report

The COVID-19 Crisis Is a Wake-Up Call for Cash Management

In the aftermath of the COVID-19 crisis, systems designed to facilitate the movement of cash will need to be evaluated.
/

Boston, June 4, 2020 – The novel coronavirus pandemic caused massive deleveraging in March 2020 as investment managers shifted their positions to cash amid extreme market volatility. As cash and liquidity buffers increased, the reliability of systems allowing the movement of funds into safe havens was called into question. Will systems that can’t provide the necessary scale to deal with a host of volume and volatility scenarios become obsolete?

This Impact Brief focuses on the role the novel coronavirus crisis will have on investment manager cash practices and systems, and what changes the market may see as a result. It is based on Aite Group’s conversations with providers of cash management solutions, prime brokers, fund accountant systems providers, and buy-side firms.

Clients of Aite Group’s Institutional Securities & Investments service can download this seven-page Impact Brief. To learn more about the topic covered in this Impact Brief, please contact us at [email protected].

This report mentions AcadiaSoft Inc., CBOE, Hazeltree Fund Services Inc., Investment Company Institute, Northern Trust Corporation, and SWIFT.

Related Content

Five Important Changes to the Repo Market Every Investor Should Know About

Repo no longer lives in isolation.

Aite Matrix Evaluation: Investment and Fund Accounting Systems

Demand for investment accounting systems remains positive despite the prevalence of outsourcing.

Buy-Side Fund and Investment Accounting: Overlooked but Not Forgotten

Oversight and risk controls over outsourced arrangements are the main theme for the 2020s for firms with such arrangements.

Get Summary Report

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.