Cash Flow Management Program
Money management goes beyond picking investment products. We believe improving our clients’ overall investment plan is the smartest way to impact and improve returns. At PMA, this process begins with a thorough understanding of our clients’ cash flow and is carried out through PMA’s Cash Flow Management Program, which analyzes large fields of data and capitalizes on the newfound insight.
PMA’s Cash Flow Management Program gives public entities a complete and accurate picture of their cash flow so they can put their money to work sooner and longer.
There is more to money management than simply shopping for investments. An accurate cash flow plan allows a client to intelligently build an investment schedule that capitalizes on the yield curve benefits of longer-term investing. PMA’s cash flow analysis helps a client facilitate that liabilities are met with a maturity, invest longer to take advantage of higher rates, plan for cash shortfalls, identify long-term investment potential and maximize interest income. PMA’s cash flow analysis is free of charge for its investment clients.
The Power of a Good Plan
The result of PMA’s comprehensive historical analysis of a client’s financial statements is a daily cash flow plan. This plan maps out such items as payroll dates and amounts, debt schedules and state aid payments, to name a few. PMA then builds an optimized investment schedule that seeks to:
- Cover expenses
- Extend maturity lengths
- Capture the yield curve benefits of long-term investing
Competitive Bidding
Not only does PMA put a public entity’s money to work for the long-term, its competitive bid program seeks to secure the best rate possible. This is accomplished by competitively bidding investments across our expansive network of banks and securities dealers on behalf of each public entity. A single call to PMA gives investors efficient access to a robust institutional network of financial institutions.
Bond Proceeds Management Program
PMA’s Bond Proceeds Management Program (PMA BPM) is a comprehensive service that helps you establish a reliable and sufficient flow of funds, optimize your investment earning and adequately cover projected expenses. Additionally, PMA BPM helps public entities reap significant benefits in the critical areas of investment, arbitrage and reporting.
Tax exempt debt issuers are subject to a long list of Internal Revenue Service (IRS) requirements that dictate how and when they can use their bond proceeds. Through PMA BPM, these obligations are fulfilled with as little hassle as possible.
Investment, Arbitrage and Reporting
PMA BPM assists public entities in reaping significant benefits in the critical areas of investment, arbitrage and reporting.
- PMA competitively bids client investments across its expansive network of banks and dealers to obtain optimal pricing on client investments.
- PMA’s local bank participation program allows local institutions to participate in the process if desired.
PMA helps bring a public entity’s construction project to life through a comprehensive investment and arbitrage management program that assists in maximizing interest earnings while complying with arbitrage and IRS regulations, existing policies, as well as state and federal statutes.
PMA’s specialized monthly reports provide:
- Reliable interest earnings projections
- Arbitrage spend down status
- Spending exception tests
- Monthly updates on potential arbitrage payments
- Comprehensive portfolio reporting
Fixed Income Investment Program
OLAP also offers a Fixed Income Investment Program which allows Participants to individually invest monies in certificates of deposit issued by financial institutions and certain securities issued by the US Government or its agencies and instrumentalities. This is a viable option for reserve funds or bond proceeds that do not require daily liquidity.
PMA has built an extensive institutional network of local and national investment providers that give PMA the ability to provide innovative investment solutions, competitive fixed income products and liquidity through many business cycles.
The Fixed Income Sales and Trading Team provides sales, trading and other institutional services to public entities and is committed to the fixed income marketplace. This includes:
- All major U.S. government and agency securities
- Certificates of deposit
- Money market funds
PARTICIPANT BENEFITS
- Vast market coverage built from over 20 years of developed relationships
- Multiple primary dealers and sources
- Variety of products including U.S. Treasuries and Government Agencies
- Advanced technological platforms
- Market transparency and best execution (buy and/or bid requests)
- Auto-execution capabilities
- Access to institutional buyer benefits such as wholesale pricing
