Why is it that many pensions pay substantially higher fees for their money market cashsweep than they pay their best performing bond and equity managers?
September's pilot program eases these hassles by allowing companies that generate substantial foreign currency within China to consolidate that cash into a single pool and sweep it overseas where treasurers can manage it the way they manage cash generated by their business in other countries.
Other important terms to consider include whether there are liens on the IP (a negative), Material Adverse Change clauses, cash-collateral elements (where a bank can sweep the account), and other particular covenants.
As a result, position-traded funds may yield slightly more than sweep accounts, which could be worth the effort if you do not need the cash immediately available to fund trades.