Case Study: Investment of Cash Reserves

The Challenge

An office condominium client had built up a sizable cash reserve for future capital expenditures. These funds were earning interest in a money market account. The challenge was to get a better rate of return on the invested monies.

Midgard's Solution

We projected future receipts and disbursements for this reserve account. Next, we introduced our client to a financial advisor with a worldwide investment banking firm and together, we structured an investment strategy of purchasing a ladder of FDIC-insured CDO's with staggered maturities based on our cash flow projections.

The Outcome

Our client is now earning over 150 basis points more on their reserve funds than before.