SIPC protection for cash

S

SoCalOptionsWriter

I have understand 250k is the limit for cash in a brokerage account that is insured by the SIPC. So, what do large investors, those whose cash position might exceed a million, do to insure that cash in the admittedly unlikely case of a brokerage collapse?
 
T-bills are marginable, you earn interest, and they are not cash. To be honest, I get these questions more from accounts under $250,000 than I do from accounts over $2.5mm.

SoCalOptionsWriter said:
I have understand 250k is the limit for cash in a brokerage account that is insured by the SIPC. So, what do large investors, those whose cash position might exceed a million, do to insure that cash in the admittedly unlikely case of a brokerage collapse?
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Larger shops will ask their primary for a treasury plus account. The treasuries are held by a trust company and the broker will trade derives against them to enhance the yield. Depending on volatility you may be able to pump yields 60bps net. The rates popping has had the CME reintroduce four weeks on up. The brokers need to attract big size overall as they charge 5 to 10 bps to do it. CME clearing will accept trust receipts as collateral.
 
ETJ said:
"ammo one day will be the new world currency" ~ mark brown"

raisins and twinkies would be my bet.
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%%
LOL
Ammo;
raisins, and apples , [smoked sardines,LOL], salmon, canned fruit, canned chili, venison- so have plenty of ammo:D:D
 
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