PowerPoint Presentation2
StoneCastle Partners, LLC (“StoneCastle”) was founded in 2003 to connect investors with the $3 trillion community banking
industry. Our industry experience and proprietary processing and analytical systems have made us one of the leading providers
of cash management strategies.
from two world-class financial partners with experience in asset
management and financial services.
record, disciplined investment strategy and long-standing commitment to
the middle market.
CIBC is a leading global financial institution, providing
a full range of financial products and services to retail
and institutional clients around the world.
*Assets are quoted as of December 31, 2018. Assets quoted include Bulk Insurance Deposit Services (“BIDS”), a program where StoneCastle Cash Management, LLC (“SCCM’) acts as a consultant and introduces banks to third party administrators. Assets
in BIDS are not included in the calculation of SCCM’s regulatory assets under management noted in its Form ADV.
Today StoneCastle Cash Management has senior level relationships with approximately 1,300 banks, of which 800+ are deposit
taking banks.
Bank Relationships
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Source: Federal Reserve Bank of St. Louis (FRED)
Quantitative Tightening and the Fed Funds Target: Hot, Cold or Just Right?
Quantitative Tightening Is Not Quantitative Tightening
--FX Street (James Bullard)
--Wall Street Journal
--Wall Street Journal
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Employment and Wage Growth: Tight Labor Markets Continue at What Cost?
Private Payrolls up 183,000, but Moody's Economist says
Jobs May Have Peaked
Tight Labor Market
--Wall Street Journal
Still on the Rise
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US: Annual core PCE Price Index Stays Unchanged at
1.9% in December
18-Year High
--Bloomberg News
--Wall Street Journal
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Dusting off the Phillips Curve: Is it Dead or Alive?
The Fed Needs to be Especially Watchful for Awakening
of the Phillips Curve
--MarketWatch.com
on Interest Rates
--Wall Street Journal
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US Treasuries and Deficit Spending: Bond Market Liquidity and Supply, Supply, Supply?
Liquidity Crunch Is the New Bubble Gripping Credit
Investors
--Wall Street Journal
Looming Trillion-Dollar Deficits
--Wall Street Journal
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A $4 Trillion Scapegoat for Market Volatility: the
Fed’s Shrinking Portfolio
Bond Portfolio Runoff
--Wall Street Journal
Ineffective, Economists Say
--Wall Street Journal
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LIBOR Phase Out and SOFR Implementation: What to Expect Next?
Libor’s Replacement Is a Little Too Real
--Wall Street Journal
Volatility Spike
Shadow
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Cooling Housing Market Prompts Closer Scrutiny of Some
Lenders
Families
--WealthManagement.com,
Survey Shows
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The Age of the Economic Cycle, An Inverted Yield Curve and Other Geopolitical Concerns?
What’s the Yield Curve? A Powerful Signal of Recessions Has Wall
Street’s Attention
--New York Times
--Bloomberg News
The $7.9 Trillion Pile of Negative-Yielding Debt Is Growing Fast
--Bloomberg News
-- Wall Street Journal
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US Federal Agency Obligations (FNMA, FHLB, FFCB, etc.)
Repurchase and Reverse Repurchase Agreements
Commercial Paper
Corporate Obligations
Municipal Obligations
Bank Deposits
Bankers Acceptances
Bank Deposit: Time Deposits or Structured Bank Deposits
A Permitted Investment Review
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A Permitted Investment Review: 3mo T-Bills Yields & the 2-10’s Curve
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A Permitted Investment Review: 3mo CP & 3mo CP vs. Fed Funds
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Understanding Dealer Inventory and Liquidity Through the Bid/Ask Spread
Building Portfolio Liquidity and Diversification with Today’s Limited Options
A Review of the Restricted: Prime MMF, ABS CP, and the Return of Sub-Prime
Benchmarks for Success in the Evolving Money Markets
Cash Investment Portfolio Positioning
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Direct ownership of underlying insured bank deposits No customer has lost a penny in FDIC insured accounts No credit, principal, or market risk
Cash Investment Portfolio Positioning
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Structured bank products are not pooled investments that are affected by the behavior of other investors
Money Fund, Hurt by Debt Tied to Lehman, Breaks the Buck
-- Wall Street Journal
-- Wall Street Journal
-- NY Times
-- NY Times
StoneCastle Cash
Management, LLC
• $100+ million of federally-insured deposit coverage
• Deposits are backed by the full faith and credit of the U.S. government
• Highly diversified–no single bank holds more than $250,000 per depositor
• No market, credit or principal risk
FICA® is a proprietary cash management vehicle that offers multi-million dollars of federally-insured deposit coverage via a
single, convenient account.
• Competitive yield when compared to
money market funds, U.S. Treasuries,
commercial paper, CDs, time deposits and all other money market instruments
PerformanceSafetyLiquidity
• Next day liquidity with same day purchase credit2
• Unlike a money fund, liquidity is not adversely affected by other investors
Control
• Ability to opt out of specific depository institutions
• Transparency– Ability to view location of all deposits on any day
Assigned AAAkf rating by Kroll Bond Rating Agency (KBRA)¹
About FICA® | Federally Insured Cash Account
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Corporations
Corporations
FICA® has been recognized in the 2013-2017 AFP Liquidity Survey
-AFP Liquidity Survey, 2018.
Who Uses FICA®?
Over 1,500 of your peers entrust FICA® for their short-term
working capital needs.
screened banks, ensuring full
deposit amount.
Open Discussion
Question & Answer
All information contained herein is for informational purposes and should not be construed as investment advice. It does not constitute an offer, solicitation or recommendation to purchase any security. Some information contained in this presentation has been obtained from sources believed to be reliable, but it cannot be guaranteed by StoneCastle Partners, LLC or any of its affiliates. The views presented are as of the date of this document and subject to change.
Past performance does not guarantee future results.
Interest rate earned may vary within a particular program based on the size of the account balance and the introducing party
StoneCastle Cash Management, LLC (“SCCM”) is not a bank, nor does it offer bank deposits and its services are not guaranteed or insured by the FDIC, NCUA or any other governmental agency. SCCM) is an investment advisers registered with the United States Securities and Exchange Commission (SEC). For more information regarding the firm, please see its Form ADV Part 1 and 2A on file with the SEC. Registration with the SEC does not imply a particular level of skill or training.FICA®
FICA® satisfies the Federal Deposit Insurance Corporation’s (FDIC) requirements for agency pass-through deposit insurance coverage. Program banks in the FICA® network are FDIC-insured “banks” and “savings associations” as those terms are defined in the Federal Deposit Insurance Act. The FDIC Limit is $250,000 per depositor per bank. The NCUA operates the National Credit Union Share Insurance Fund (NCUSIF) to protect accounts at federally insured credit unions up to $250,000.
U.S. Bank, N.A. is not affiliated with SCCM and is not responsible for, and does not guarantee the products, services or performance of its affiliates and third-party providers.
FICA® is not a member of FDIC or National Credit Union Administration (NCUA), but the depository banks where your money is placed are FDIC and NCUA members. FDIC and NCUA are independent agencies of the U.S. government that protects the funds depositors place in FDIC and NCUA insured institutions. FDIC and NCUA deposit insurance is backed by the full faith and credit of the U.S. government.
Balances held in your deposit account may not receive FDIC and NCUA insurance. If you have any cash at any depository institution that is in the FICA® network then you may not receive full FDIC or NCUA insurance coverage on your deposits at those institutions. Funds may be submitted for placement only after a depositor enters into a FICA® agreement. The agreement contains important information and conditions regarding the placement of funds.
1 Kroll Bond Rating Agency “(KBRA)” is registered with the SEC as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP). The AAAkf rating assigned to FICA reflects the Program’s Primary Quantitative Rating (PQR) as measured by the KBRA Funds Credit Quality Rating Matrix, which is based on the credit quality of the underlying instruments that comprise the portfolio. Additionally, the fund rating is influenced by the results of the qualitative assessment of SCCM. The qualitative shadow rating (QSR) was found to be strong.
2 Liquidity is on a next business day basis. Same day purchase credit and next day liquidity redemptions are subject to a 3:00 PM ET cut-off. Please read the FICA® Program Terms and Conditions for more complete information and the governing terms of the account (including liquidity, terms, etc.). This can be found at www.ficaaccount.com.
FICA® is a service mark of StoneCastle.
For Institutional Use Only.