Plumbing Problems?
As part of our management process, we maintain a certain level of short-term reserves - or what we call "frictional cash" - to handle security purchases and/or investor redemptions. On each business day, our fund accounting group informs our team of fixed income traders how much frictional cash is available for very short-term investments. Our traders scan the short-term investment market to identify attractive opportunities and then transact to ensure that all of the Fund's cash is working. We typically use this frictional cash to invest in top-rated commercial paper issuers, overnight discount