TreasurySpring Public Launch
TreasurySpring launches Fixed-Term Fund (FTF) platform following a rigorous and successful Beta testing phase during which more than $400M of FTFs were issued.
London, 10th July, 2019: LONDON, TreasurySpring, the London-based financial technology company today announced the launch of its Fixed-Term Fund (FTF) platform.
A Fixed-Term Fund is a completely new financial instrument, conceived, designed and built by TreasurySpring, to unlock the multi-trillion dollar wholesale money markets by providing new digital pipelines to connect cash-rich firms to institutional borrowers from the sovereign, bank and corporate sectors.
FTFs enable all holders of large cash balances, from corporates to charities, private funds to insurance companies, family offices to private banks and beyond, to reduce and diversify risk on those balances, whilst simultaneously increasing returns. For investment-grade firms seeking financing, TreasurySpring’s FTF platform provides flexible, low-cost access to a diverse universe of new short-term funding sources.
An FTF shares many of the characteristics of a term deposit, in that it is a term product that can be acquired without the need for any infrastructure. However, instead of providing exposure to unsecured bank risk, as with a deposit, an FTF can offer exposure to any short-dated, investment grade fixed-income obligation, such as a single government bill, a single secured bank loan or a single investment-grade corporate loan, for example.
The FTF platform can be accessed directly via TreasurySpring’s cloud-based web-portal and has been designed to integrate easily into other platforms via secure APIs, making it straightforward to interact with cash investors, issuers, portals and treasury management systems. Since issuing the world's first FTF in June 2018 in Beta phase, clients from multiple sectors have purchased more than $400M of FTFs across a broad range of new products, with more than $300M of issuance in 2019 already.
Kevin Cook, co-founder and CEO, TreasurySpring, said: “The public launch of our online platform is the culmination of three years work to build the financial, operational and technological infrastructure necessary to deliver truly digital pipelines that connect cash rich investors to institutional borrowers. Through these pipelines, we are democratising access to the wholesale money markets, enabling every holder of large cash balances to invest them in the same way as the most sophisticated financial institutions. We designed our FTF platform in response to clear and repeated demand for cash investment alternatives - alternatives that allow investors to risk less but earn more – and we are delighted to now be able to deliver simple standardised, regulated products to meet that demand.”
Tim Howell, former CEO of Euroclear and investor in TreasurySpring added: “I have known the TreasurySpring executive team for a number of years now and firmly believe that FTFs bring true innovation to our industry; indeed, I believe we are looking at the first material innovation in this space since the creation of money market funds in the 1970s.”
Justin Meadows, founder and former CEO of NEX Treasury and investor in TreasurySpring commented: “When Kevin and his partners first explained the concept behind Fixed-Term Funds to me back in 2016, I knew that they were onto something special. FTFs are a simple but powerful tool that can add value to treasury teams of all shapes and sizes; and with the ease of onboarding and execution through their new online portal, I expect to see the speed of adoption continue to grow rapidly over the coming months and years.”
Media contacts: TreasurySpring
Sarah Duranni, Holly Finn
Tel: +44 20 7959 2235
About TreasurySpring (Wordcount 189)
TreasurySpring is a financial technology company that is unlocking multi-trillion dollar short-term funding markets. Our Fixed-Term Fund (FTF) platform delivers new digital pipelines to connect cash rich firms to institutional borrowers from the sovereign, bank and corporate sectors.
Built on enterprise-grade infrastructure, FTFs bring the power of the largest, most sophisticated treasury departments to all firms holding material cash balances, for the first time.
Driven by client demand to reduce and diversify risk in cash holdings without compromising returns, we have taken established concepts and structures and re-purposed them to create a new, regulated and standardised platform.
Designed for all holders of large cash balances, from corporates to charities, private funds to insurance companies, family offices to private banks and beyond, FTFs provide transparent, single-name, fixed-term access to government, secured bank and corporate assets, through a simple digital platform that requires no additional infrastructure or cost. Our executive team has worked together in fixed income since 2006, in the hedge fund, asset management, consultancy and technology sectors, and we have advised on over $30bn of cash management assets for some of the world’s leading hedge funds and corporations. For more information, please visit TreasurySpring.com, follow us on Twitter@TreasurySpring or visit our LinkedIn page.
9th July Market Commentary
Since our last distribution Central Bank independence has been a hot topic (potato). In the US, the President has for some time now been pressing the Federal Reserve to change the tone, cut rates and by doing so further stimulate what has been one of the longest bull runs in history.
All major US indices are hovering around all-time highs believing that a rate cut is all but a certainty. My humble opinion continues to be that this is a little preemptive, especially in light of the very strong employment data. However, markets do not want to give up on the opportunity to take profit that the change in rates would bring. Turkey has taken even more direct intervention, with President Erdogan firing the Governor, Murat Cetinkaya a year early.
Aside from this, the long-awaited news from Deutsche Bank of its aggressive restructuring has become reality. Whilst the headline reduction in employees was lower than many expected (at a still staggering 18,000 vs 20,000). The number that did beat was the size of the "non-strategic portfolio" which grew from estimates around the EUR 40-50BN mark to EUR 74BN. Whilst the news appeared to initially be taken well, by the close of the market the stock had fallen back below the Monday morning open and all associated euphoria appeared to have evaporated.
With the tricky calendar date of June 30th a distant memory and the consequent return of bank balance sheet availability, the improvement in yields for UK Treasury Bills has come to fruition. Supply remains thin in the secondary market but the price is at least a few basis basis points friendlier. What has been of most interest of late is Governor Carney's comments regarding the recent spate of liquidity crises in bond funds. "These funds are built on a lie, which is that you can have daily liquidity, and that for assets that aren't fundamentally liquid". Maybe it is time for a proper risk metric and liquidity rating on portfolios, or even better...a prudent, transparent product where there is no maturity mismatch and one is fairly compensated! If only...
Whilst derivatives traders in USD are still fully pricing a cut at the next FED meeting at the end of the month, the odds of it being 50 basis points has all but been eradicated with bets pared back to just the 25 this time around. This has meant a choppy time for those investing across the US Treasury curve, but for now we are still in a position to issue US T-Bill FTFs for a period of up to six months with the yield still starting with a 2!
TreasurySpring voted top B2B fintech at Money20/20 Europe
We were delighted to be the only B2B fintech to make it into the final three of Money20/20 Europe's competition to find Europe’s most exciting financial technology startup.
It was a pleasure to share the (enormous) Main Stage with Garrett Cassidy from Trezeo and Stuart Bungay from Tully, as well as Ian O'Sullivan from Mastercard StartPath and Surabhi (Ruby) Nimkar from GreenHouse Capital Africa. Huge congrats to Trezeo for winning overall - you and Tully are doing amazing things!