What strategies should be considered when creating the plan?
The strategy would center on what is most appropriate for the specific business or entity. If a business can only commit to very short-term liquid investments, then the strategy would center on maximizing yield through, perhaps, institutional money markets or overnight repurchase agreements. If a strategy can call for a certain portion of assets to be invested longer-term, [there are] various products that include option-rate preferred securities, commercial paper, corporate securities, federal agency securities, U.S. Treasury securities and variable-rate notes. What are some of the pros and cons of these strategies? One of the pros would be that all of these investments are investment-grade with relatively low risk to principal. The higher the rating on the specific investment, typically the lower the yield in terms of a similar investment with a lower investment rating. The cons are that some of these investments can be illiquid, although they have a specific maturity. That’s where b
