Cash management: Credit research

In today’s complex and fast-changing markets, prudent risk management is more important than ever, including understanding the source of investment risk and ensuring it is appropriate for each portfolio.

For cash investors, the events of the last few years have undermined the very notion of ‘risk-free’. It has never been more important to find cash management solutions that can take advantage of a global platform, helping clients navigate through the issues, while seeking to deliver the stability and liquidity they need.

Recent market events have not caused us to change our approach, rather they have reaffirmed our commitment and conservative philosophy in managing this asset class.

The BlackRock difference

BlackRock’s risk management team and credit analysts work with portfolio managers while remaining independent from them — so risk managers are unbiased in their recommendations and portfolio managers can make more precise and informed decisions. BlackRock’s cash management professionals are supported by Aladdin®, the Firm’s proprietary risk analytics technology.

While proprietary technology platforms may help manage risk, risk cannot be eliminated.

We employ a collaborative process in the development of our proprietary Approved Lists where input from our experienced team of portfolio managers, credit analysts and risk and quantitative analysts is solicited.

To earn a place on our Approved Lists, the credit team conducts a thorough review of each issuer and presents recommendations to the Credit Committee. Our credit analysts have the final say and constantly review the resulting Approved Lists to monitor for risks. As much as we’ve embraced a high level of detailed analysis to add names to our Approved Lists, imposing maturity restrictions or the removal of names is simple. There is no committee required, only the diligence and valued opinion of our esteemed credit analysts.

Our clients need us to anticipate the improbable and then prepare for it

It’s why we have maintained a high standard of analytical rigor and fact-based investing. In vast quantities of information, we seek the insights that can change outcomes. We dig deep to find the numbers behind the numbers.

All of our expertise, analytical power and technical acumen are devoted to helping clients achieve the outcomes that they need. Our strong track record of restricting, suspending, or removing issues on our Approved Lists helps us deliver peace of mind to our clients in this changing world.