3 Stocks to Research as Higher Yields Make Cash Platforms More Attractive

When bond yields jump to multi decade highs and headlines focus on war, oil above $92 and tougher central bank talk, cash suddenly feels less boring. Investors are rethinking where they park short term funds, which can create both comfort and risk if you pick the wrong stock. This article explores three stocks tied to money market and short duration cash platforms that are closely linked to this new rate and liquidity story.

The stocks in the article below are just a starting sample. The full screen surfaced 19 more companies with equally detailed money market and short duration cash narratives that are not covered here. To identify and analyze the highest conviction opportunities in this theme, head straight to the Global Listed Money-Market and Short-Duration Cash Management Platforms screener.

TP ICAP Group (LSE:TCAP)

TP ICAP Group is one of the world’s largest interdealer brokers, sitting in the flow of trades when big institutions move rates, FX and money market products. This links it naturally to short duration and liquidity themes. Most revenue comes from Global Broking at about £1.45b, with Energy & Commodities at £444m, Liquidnet at £364m and data focused Parameta Solutions at £204m, giving a mix of transaction and subscription income. The company is valued at roughly £2.5b, which puts it in the mid cap bracket for UK financials.

Investors looking at the money market and short duration theme may find TP ICAP Group interesting because it tends to see more client activity when bond and rate volatility pick up, as central banks keep markets guessing and liquidity becomes more valuable. The company has been working to grow higher margin businesses such as data and analytics, while also using technology to make its broking platforms more efficient. This combination may support more stable earnings over time. On the flip side, there are questions about how far electronic trading could squeeze traditional broking, and a recent large one off loss and reliance on external borrowings underline that this is not a risk free cash play.

TP ICAP Group’s push into data and electronic broking could be masking a very different story from its traditional broker image. Before you decide how it fits your cash focused portfolio, scan the full 3 key rewards and 2 important warning signs

Northern Trust (NTRS)

Northern Trust is a large US financial group that helps institutions and wealthy families hold, move and invest money, including through cash management, money market and short duration products that fit this screener’s theme. Most revenue comes from Asset Servicing at about US$5.2b, followed by Wealth Management at about US$3.5b and around US$401 million from other activities, giving it a broad fee base tied to custody, asset management and banking. The company has a market cap of roughly US$34.2b.

For investors watching the shift into cash like vehicles as yields rise, Northern Trust offers an interesting mix of fee income from money market and cash sweep products plus a long history in asset servicing and wealth management. The company has solid profitability metrics, a dividend stream and fresh product efforts such as laddered ETFs and digital cash capabilities. It also faces fee pressure, rising technology spend and sensitivity to global markets and interest rate cycles. That balance between cash focused opportunity and execution risk is where the real story on Northern Trust starts to get interesting.

Northern Trust’s cash engine could be doing more work in your portfolio than you think. Get the full picture on fees, dividend support and cash products in the analysis report for Northern Trust

Monex Group (TSE:8698)

Monex Group is a Japan based online financial group best known for its retail brokerage platform, which likely channels client cash into sweep and money market style products that fit this screener’s cash management theme. Alongside brokerage, it runs businesses in digital assets, asset and wealth management and other services, with reported segment revenues of about ¥17,409 million from Digital Asset, ¥7,909 million from Asset Management & Wealth Management and ¥12,375 million from Others, plus sizeable segment adjustments. The stock has a market cap of roughly ¥186.8b, putting Monex Group in mid sized territory among listed Japanese financial firms.

Monex Group provides exposure to an online brokerage and crypto asset platform that can participate when retail investors move more cash into sweep and short duration products. Recent quarterly numbers show revenue and earnings, indicating that cash and trading activity are flowing through its platforms in an environment of higher bond yields and macro uncertainty. The flip side is that earnings history is mixed, return on equity is only moderate and the company’s funding mix and dividend consistency need careful review. For investors willing to do that homework, Monex Group offers a mix of digital capabilities, cash management fees and potential benefits from different uses of client cash balances.

Monex Group’s mix of online brokerage and digital assets could be masking a much bigger cash story. See how the analyst forecasts for Monex Group lines up with funding, dividends and one underappreciated risk that could flip the thesis.

Seeking Alternatives Before Everyone Else?

Fresh stock ideas can move from quiet to flying once the crowd catches on. Use these screeners while they are still under the radar for now and consider them promptly.

• Spot cash generators that aim to weather rough markets by running strong finances and resilient earnings using the curated list of solid balance sheet and fundamentals (19 results).
• Explore potential momentum in companies linked to artificial intelligence before the story feels crowded by starting with the hand picked 74 profitable AI stocks that aren't just burning cash.
• Look into energy transition themes while many investors stay on the sidelines by tracking companies in the focused 92 nuclear energy infrastructure stocks.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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