Cash Management

Cash management

BlackRock provides cash and liquidity solutions that are central to both business operations and portfolio management, enabling an enhanced yield profile while managing counterparty, credit, and liquidity risk.
Contact our cash management team Contact our cash management team

Providing cash and liquidity management solutions

Entrust your cash with BlackRock, a counterparty focused exclusively on managing money on behalf of our clients – so your best interest is a priority. Let’s work together to find the right combination of strategies that seeks to deliver stability, liquidity and performance of your portfolio.

Liquidity
Liquidity
Best-in-class access to liquidity, pricing and diversification to manage risk.
Binocular
Insight
Dedicated portfolio managers for disciplined portfolio and position-level management to seek to deliver performance.
Maintenance tools
Technology & analytics
Sophisticated analytics, insights, risk management and reporting powered by CachematrixTM by BlackRock and Aladdin.

Cash and liquidity solutions

BlackRock considers cash management a unique investment discipline requiring a distinct skill set to effectively hedge against risk and deliver on a client's individual liquidity needs. While our investment strategy is conservative by nature, we strive to deliver competitive, consistent returns over time.

Navigate our cash range

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Money market strategies

Our liquidity strategies are specifically designed to meet the cash management needs of institutional investors. They satisfy the most conservative investment policies by consistently focusing on high-quality investments and providing same-day liquidity with competitive yields.

Government
Government money market strategies invest at least 99.5% in cash, securities or repurchase agreements that are collateralized by cash or government securities.
Prime
Prime money market mutual strategies invest in securities issued by corporations, banks and other non-government entities.
Municipal
Municipal money market strategies may potentially offer tax benefits to an investor, since the earnings are typically exempt from federal and sometimes state income taxes.

Short duration

BlackRock’s Short duration strategies employ a fundamental, diversified and relative-value approach focused solely on the front-end of the yield curve.

Learn more

Exchange traded funds (ETFs)

ETFs are an increasingly integral part of the investment process for institutional investors. They are changing the way institutions construct portfolios, fine-tune risk and manage operational tasks.

0-3 month Treasury bond strategy
Index-based exposure to U.S. Treasury bonds with remaining maturities less than or equal to three months.
Treasury floating-rate bond strategy
Index-based exposure to U.S. floating rate Treasury bonds, whose interest payments adjust to reflect changes in interest rates.
Short treasury bond strategy
Index-based exposure to U.S. Treasury bonds that mature in less than 1 year.
Ultra short-term bond strategy
Actively managed strategy that seeks to provide income by investing in a broad range of short-term IG fixed and floating-rate debt securities and money market instruments.
Short maturity bond strategy
Actively managed strategy that seeks to maximize current income through diversified exposure to short-term bonds.

Separately managed accounts

Unlike commingled mutual funds, separately managed accounts are segregated mandates comprised solely of one client’s assets. The investment strategy of the account is driven by the specific objectives and risk tolerance of the account owner, often dictated by their investment guidelines.

Money market minute

Liquidity in the wake of falling rates

[00:00:06.24] In the current economic environment, which is characterized by potential rate cuts, interest rates remain relatively high and we believe there are opportunities for money market fund investors.

[00:00:15.92] When rate cuts are priced into the market and there is an inverted yield curve, active short duration positioning can help ensure that money market funds continue to offer competitive risk-adjusted returns.

[00:00:27.44] Additionally, monetary policy loosening may lead to increased liquidity in the financial system, which typically creates ample supply of high-quality short-term securities.

[00:00:39.92] During periods of economic volatility, we believe that active cash management is critical to clients overall investment strategy.

[00:00:48.28] All investors have a cash need.

[00:00:50.68] It is important to effectively manage liquidity across different rate cycles to take advantage of same-day liquidity, diversification, operational ease and active duration management.

[00:01:01.84] Money market funds invest in high quality debt securities, which provide relatively stable and low risk opportunities to earn returns on cash reserves.

[00:01:11.32] Although rate cuts might lower the yields on short term investments, money market funds hold a mix of securities with varying maturities.

[00:01:19.72] Their ability to blend shorter and slightly longer dated securities can help balance yield and risk, and adapt to changes in the interest rate environment with more flexibility.

[00:01:30.20] Money market funds generally closely reflect central bank rate changes due to their direct investment in short term securities.

[00:01:36.96] However, a lag often exists between rate cuts and the decline in money market fund yields due to the mix of maturities in their portfolios as securities mature and are replaced by lower yielding ones, money market fund yields adjust over time.

[00:01:52.72] As the broader economic environment evolves, clients should review their specific goals and investment time horizons, and seek money market investments that provide liquidity, stability, and opportunity for yield.

[00:02:02.16] that provide liquidity, stability, and opportunity for yield.

[00:02:04.48] These qualities may help to optimize cash returns and build more resilient portfolios to more effectively navigate market fluctuations.

Opportunities for money market fund investors

Active short duration positioning can help ensure that money market funds continue to offer competitive risk-adjusted returns.

Utility of cash

During periods of economic volatility, we believe that active cash management is critical to clients' overall investment strategy.

The lag effect

Money market funds generally closely reflect central bank rate changes due to their direct investment in short-term securities.

Still time for prime

In recent months, various prime institutional money market funds have announced plans to liquidate or convert to government money market funds before new amendments to Rule 2a-7 become effective in October of 2024.

Despite operational challenges to maintaining these products after these amendments become effective, BlackRock remains committed to offering prime money market funds in the U.S. as we believe they can offer several potential benefits to a well-structured cash portfolio.

Money market funds are not a one-size-fits all solution.

We believe assessing and segmenting cash needs across strategies, including prime money market funds, can be beneficial to many cash investors.

For one thing, prime money market funds offer the potential for a yield pickup over government money market funds because they purchase a broader universe of securities than government money market funds, while still maintaining high levels of liquidity and stability.

And unlike government money market funds, prime institutional money market funds utilize a floating net asset value. As a result, factors like interest rate changes can affect a prime institutional money market fund's floating net asset value and, in turn, can potentially amount to a compelling total return depending on an investor's time horizon.

Also, prime money market funds maintain holdings across a range of issuer and security types, meaning they may offer broad diversification benefits, in addition to a potential yield differential, compared to bank deposits.

Finally, by purchasing commercial paper and other similar debt instruments, we believe prime money market funds can help support the real economy.

In our view, the primary reasons for investing in money market funds are stability, liquidity and yield.

To this end, prime institutional money market funds' floating net asset values provide a clear view into their credit quality and interest rate sensitivity.

Also, minimum daily and weekly liquidity thresholds serve as a barometer of a fund's ability to meet redemptions.

BlackRock plans to continue managing prime money market funds in adherence with the newly defined daily and weekly liquidity thresholds set by the Securities and Exchange Commission.

BlackRock seeks to continue operating within strict controls to manage risk and remains committed to prime money market funds to help offer utility and value to cash investors.

Primed for money market fund reform

Prime institutional money market funds seek strong returns through purchasing diverse securities and utilizing a floating net asset value1, while maintaining high levels of liquidity2.

Utility and value proposition

By purchasing commercial paper3, and other similar debt instruments, we believe prime institutional money market funds can help support the real economy.

High visibility

Prime money market funds floating net asset values provide a clear view into their credit quality and rate sensitivity, while minimum daily and weekly liquidity thresholds help funds meet redemptions.

Dynamic markets require dynamic technology. That's why BlackRock Cachematrix is constantly evolving to help you manage cash better and faster. Our liquidity platform is built around operational efficiency, offering configurable tools for end-to-end cash management. From initiating trades, streamlining settlement and producing reports, you need a convenient platform to manage money market fund investments. More function, less friction. BlackRock Cachematrix gets it. BlackRock Cachematrix is guided by three foundational pillars: innovation, integration and impact. Powered by decades of financial service knowledge and technology expertise, our functionality features sophisticated investment tools and analytics. Delivering the relentless innovation and global client support you need to help you confidently navigate changing market conditions. BlackRock Cachematrix meets you where you are, integrating with existing tools to empower you to streamline your time spent managing cash. With BlackRock Cachematrix, you can view and trade accounts across entire portfolios, conduct in-depth risk analysis, compare available investment options, and leverage multiple reporting interfaces. With BlackRock Cachematrix, you also benefit from the impact of our global ecosystem–one of the largest liquidity portal providers. Our diverse client base provides unique insights, helping us to continually enhance and evolve our solutions. We are always reimagining ways to simplify cash management. Reimagine how you manage cash with BlackRock Cachematrix.

Let's tech about the future of cash management

Dynamic markets require dynamic technology. That's why BlackRock® Cachematrix™ is constantly evolving to help you manage cash better and faster.

Our team

With one of the most experienced cash management teams in the industry, BlackRock is able to offer clients an investment approach that has been tested through time and a variety of solutions designed to meet the needs of today’s cash investor.

Roland Villacorta, CFA
Managing Director, Head of Global Cash Management and Head of Securities Lending within BlackRock Global Markets
Roland Villacorta, CFA, Managing Director, is Head of Global Cash Management and Head of Securities Lending within BlackRock’s Global Markets. He is a member of BlackRock's Global Operating Committee.

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