You can change your Treasury portfolio at any time from the Treasury page. Some changes take effect within a day or two with nothing sold. When a change means holding fewer Treasuries, you choose how to get there: gradually, as rungs mature, or immediately, by selling. This article walks through both.
Making a change
- Go to Treasury and select Edit portfolio
- Edit your current targets or choose a preset
- If you want a new recommendation, you can also update your monthly cash outflows and investment objective
- If your change reduces your ladder, choose how to transition (see below)
- Confirm
The same guardrails from How Mercury builds your Treasury portfolio apply: at least three months of cash in Near-term, at least $1,000 per rung, and up to 36 rungs.
Changes that don't sell Treasuries
Adding a ladder, adding rungs, or moving cash into your ladder involves buying Treasuries rather than selling them, so there’s no early-sale risk. New rungs fill automatically with cash from dividends or later deposits, so you don’t need to do anything. Purchases happen over the next trading day or two once the cash is available. If you extend your ladder further than your current cash can fill, the new rungs show as empty until dividends, deposits, or maturing rungs provide the cash.
Changing your monthly cash outflows figure doesn’t sell Treasuries either. Your Near-term and Reserve targets adjust to match, and your fund holdings are rebalanced right away. Raising the figure tops up your funds. Lowering it trims them, and the excess moves to your ladder.
Reducing your ladder: Two ways to get there
When a new target means holding fewer Treasuries (smaller rungs or no ladder at all), you choose how to transition.
Gradually (recommended)
Your targets update immediately, but nothing is sold. As each rung matures, the cash flows into Near-term and are invested per the new targets. Removing four rungs takes about four months. Deposits and maturing rungs move the portfolio toward the new target along the way, and fund dividends are reinvested in the fund that paid them. Because no rung is sold before maturity, this path doesn’t realize a market gain or loss.
Rebalance now
Mercury immediately sells the rungs needed to reach your new targets. We’ll sell the rungs that no longer fit your new ladder, starting with those furthest from maturity.Treasuries sold early go at current market prices rather than face value, so this can realize a gain or a loss. You’ll see an early-sale warning before you confirm, and confirming is a separate extra step so it can’t happen by accident.
Gradually is the default. Rebalance now is for when you need the cash sooner and accept that trade-off.
A few things to know
- One change at a time. You can start a new change once the previous one has been processed.
- Existing Treasury customers. If your portfolio was set up as a percentage split between funds, your first edit moves you to a months-based portfolio. See Mercury Treasury tax FAQs for what changes and what doesn't.
U.S. Treasury securities held in a Treasury ladder fluctuate in market value before maturity as interest rates change. Selling a Treasury ladder before its maturity date may result in a gain or loss. Mercury Advisory’s portfolio management is designed to avoid selling Treasury ladders before they mature.
All investing involves risk. Yields fluctuate, may decline, and are not guaranteed. Past performance is not indicative of future results.
Mercury Treasury is offered by Mercury Advisory, LLC, an SEC-registered investment adviser (“Mercury Advisory”). This communication does not constitute an offer to sell or the solicitation of an offer to buy any security. All Brokerage and Clearing services are provided by, and securities are offered through Apex Clearing Corporation, an SEC-registered broker dealer and member FINRA/SIPC. Treasury accounts are not FDIC insured, are not bank deposits, and are not guaranteed by Choice Financial Group or Column N.A., and may lose value. Mercury Advisory is a wholly-owned subsidiary of Mercury Technologies, Inc. Learn more here.