BNY Mellon, State Street reshape liquidity buffers
HQLA falls as share of custody banks’ investment portfolios
Custody banks BNY Mellon and State Street both want to tilt their investment portfolios away from the most liquid assets towards higher-yielding instruments.
Each firm piled into high-quality liquid assets (HQLA) over the first half of the year, in part as a way to park cash thrust upon them by clients in the midst of the coronavirus panic. Over Q3, they began allocating more to non-HQLA in a bid
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