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 PTMA, this process begins with a thorough understanding of our clients’ cash flow and is carried out through PTMA’s Cash Flow Management Program, which analyzes large fields of data and capitalizes on the newfound insight.
The 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. 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. Cash flow analysis is free of charge for its investment clients.
The Power of a Good Plan
The result of PTMA’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. PTMA 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 PTMA 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 PTMA gives investors efficient access to a robust institutional network of financial institutions.
Bond Proceeds Management Program
Bond Proceeds Management Program (BPM),through PMA Securities, LLC, 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, 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 BPM, these obligations are fulfilled with as little hassle as possible.
Investment, Arbitrage and Reporting
BPM assists public entities in reaping significant benefits in the critical areas of investment, arbitrage and reporting.
- PTMA competitively bids client investments across its expansive network of banks and dealers to obtain optimal pricing on client investments.
- PTMA’s local bank participation program allows local institutions to participate in the process if desired.
We help 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.
Our 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 Rate Investments
Institutional relationships with some of Wall Street’s most experienced professionals and an extensive local and national bank network enable the PTMA family of companies to provide Participants world-class fixed income opportunities.
PTMA offers SD FIT Participants direct access to multiple types of Bank Certificates of Deposit:
- FDIC CDs
- Collateralized CDs
- U.S. Government agency investments
- U.S. T-Bills and Notes
- Certain securities from SD issuers
Fixed Rate Investment Bid Process
PTMA’s investment bidding services are set in place to provide Participants the opportunity to secure the best possible rates on their investments. PTMA obtains these rates by contacting multiple banks on behalf of the Participant, saving the Participant time and administrative resources.
For added convenience, SD FIT Participants will receive a single consolidated monthly report encompassing all of the local government’s Fixed Rate Account investments and liquid SD FIT pool activity.
