Quote Originally Posted by Loki View Post
When you're dealing with a billion dollars, surely the cost of storage would be far less than 2% of the total balance each year.
Including insurance on a billion dollars? Probably not.

And if you need to have X amount of AAA securities to meet capital requirements? Definitely not.

Look, I don't fully understand how short term paper markets work, but the only people who really trade this kind of stuff regularly aren't going to throw away money if there isn't a damned good reason to hold the asset. It's cash-like without being cash, which has advantages.