Podcasts Business Investing Top Traders Unplugged TTU131: How CTAs manage their Cash ft. Mike Kastner, Principle & Co-Founder at Halyard Asset Management

TTU131: How CTAs manage their Cash ft. Mike Kastner, Principle & Co-Founder at Halyard Asset Management

Published: Feb. 13, 2023, 5 a.m.

Today, we are joined by Mike Kastner, Principle and Co-Founder at Halyard Asset Management, for a conversation on how they use fixed income instruments to manage the cash of many CTA portfolios. We discuss how managers have evolved in terms of the way they manage cash, how Halyard Asset Management construct a portfolio from a liquidity point of view and the current state of liquidity, how they approach credit rating and why they avoid buying paper from certain banks. We also unpack what they think the sweet spot for foreign exchange hedging is and how they approach risk management, why Kastner does not believe we are approaching a recession and that there is a likely chance of a significant fall in the long bond price, as well as what Kastner believes will happen in the housing market and much more.

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Episode Timestamps:

02:40 - Introduction to Halyard Asset Management\t

04:12 - History of Cash Management\t

07:16 - What happened with money market funds?\t

09:34 - Has the Cash Management space changed?\t

11:02 - Cash Management philosophy\t

12:23 - A liquid portfolio\t

17:39 - Drawing the safety line\t

19:25 - Considering ESGs\t

21:11 - Managing cash in different currencies\t

22:41 - Balancing the mandates\t

23:52 - Managing risk\t

25:44 -...