The 9 August 2017 was regarded by many as the 10 year anniversary of the global financial crisis. The European Central Bank (ECB) and the US Federal Reserve (Fed) ploughed c. £45 billion into financial markets that day as the credit crunch began. Astonishingly, the UK base rate on that day stood at 5.75%. Since the 5 March 2009, it has only ever been 0.50% or lower.
Although not widely discussed, 2015’s EU Bank Recovery and Resolution Directive (BRRD) has had a big impact on how institutions manage their cash balances. As a result, institutions are hunting for secure vehicles for their cash deposits. The CF Canlife Sterling Liquidity Fund aims to meet this demand, with the aim of delivering an enhanced return relative to short-term bank deposits.