Trovata and J.P. Morgan Asset Management partner

Trovata will host the Morgan Money corporate investing and trading solution as the first third-party app on its platform. Joint customers can determine their liquidity needs using Trovata, then take action to invest using the services offered by Morgan Money. Users will have the ability to transact across their global portfolio in real time and compare funds across multiple managers, currencies, durations, or settlement options. In addition, investment balances and transactions from Morgan Money will flow into Trovata in real time so that operating and investing activities can be monitored and managed in one place, delivering a unified experience for managing operating cash flows and investments.

Trovata’s customers use its platform as a single source of truth for balances, transactions, and cash flow trends from all their banks and accounts. Trovata helps its users organise bank transactions into their various cash flow types. These data ‘tags’ make it easy for customers to build cash forecasting models essential for determining liquidity thresholds sufficient for keeping enough cash on hand to pay the bills. Armed with this intelligence, finance, and treasury professionals can now take action by investing any excess cash using Morgan Money. With the rapid rise in interest rates, businesses could potentially generate as much as 3-4% of low-risk interest income or ‘yield’ on its idle cash from operations.

Investors prepare for rising interest rates

Interest rates have risen from close to zero to between 3.75% and 4% in the US, 1.5% in the eurozone and to 3% in the UK, hammering global financial markets in the process.

Investors expect the Federal Reserve, the Bank of England, and the European Central Bank will increase interest rates, but at a slower pace than in recent months.

However, investors are still encouraged by signs of easing inflation in the US and the eurozone in recent weeks and are shifting their focus from the size of policy moves to the level at which rates will eventually plateau in 2022.

Markets are pricing in that the Fed’s main policy rate crests around 5% next spring before falling in the second half of the year, though the central bank’s fight against inflation is far from won.

The ECB is also expected to raise rates by 0.5% points, though Europe’s reliance on expensive natural gas means it’s a different situation there compared with the US. Inflation in the eurozone fell for the first time in 17 months in November 2022, dipping to 10% from 10.6% in October thanks to a slowdown in energy and services prices.