Cash and liquidity strategies

Cash is the lifeblood of organizations. A unique combination of fiscal and monetary policy, geopolitical unrest and economic uncertainty is prompting investors to rapidly reconsider their cash investment and liquidity strategies.

Many investors are positioned defensively or have elevated need for liquidity, keeping ample cash on hand. With central banks increasing rates rapidly following years of a zero or even negative interest rate environment, investors are able to earn appreciable returns on their cash investments for the first time in many years. In our view, the backdrop of ongoing inflation and potential further interest rate hikes necessitates prudent duration and liquidity management as well as the need to diversify cash and liquidity focused investments.

Money market funds (MMFs) can help investors navigate these market conditions, providing daily access to liquidity while also offering a diversified or government-risk portfolio rather than concentrated counterparty exposure.

Cash solutions for today's cash investors details the range of MMFs available in your region.

In addition to MMFs, BlackRock also offers a wide array of investment solutions spanning Mutual Funds and ETFs that seek to meet the unique liquidity and return needs of our clients.