And this is not about — I don’t think about it in some ways as expense cutting, it’s like — it’s attacking structural expense basis in the firm where we can think — we really fundamentally believe we can do the same thing in just a better way and more efficiently and we want to invest and grow the firm. So it’s kind of — I think about my expense priority is like how do I think about run the bank?And how do I think about grow the bank because we really want to take those dollars that we get from efficiency and invest in things like Pershing X and other really key growth initiatives. So it’s all about financial discipline and giving the team the financial resources they need to grow the firm and just managing the balance sheet, which is kind of a thing that we’ve had to do in the last couple of months quite aggressively.Mike Mayo Just one follow-up.
Connecting the dots, it makes sense. And you and Robin both came from Goldman Sachs where there’s the culture of connecting the dots. It’s just the incentives to get people to connect the dots, right? Breaking down the barriers, breaking down the silos and don’t people just ultimately do what they get paid for. And isn’t that like a big, tough task to change the incentive scheme to get people to connect the dots with each other?Robin Vince So if your question is, does it take a lot of work? And is it a big task to run a company differently than it’s been run before? The answer is absolutely yes. And we have got a leadership team who are very focused on approaching the next decade differently than the last decade. And this point of connecting the dots is a very important one.Let me give you one example.
So Dermot was talking about in our Investment Management business. And he also mentioned Pershing. And so Mike, when you look at those two businesses, just interestingly, they couldn’t have been run more separately within the ecosystem of BNY Mellon. Investment Management was run as essentially almost a separate company off to the site. Pershing was run essentially as a different separate company off to a different side and we never really explored the opportunities to be able to think about the manufacturing of investment management with the fact that we have across Pershing and Wealth Management, a $2.5 trillion distribution base.Now we’re an open architecture firm. And so we aren’t distributing all of our manufactured product into our distribution arms, but we have opportunity to explore that which frankly hasn’t been fully explored up until now.
Take the adjacency between margin where we’ve seen a significant growth for our Collateral Management business associated with new margin rules of un-cleared margin, exchanges need more efficient margin delivery. Those products are very adjacent to the rest of our Collateral Management business in tri-party. They’re also quite adjacent to our foreign exchange business. They’re quite adjacent to our cash management ecosystem.So we have both diversification in the firm, but we also have a lot of natural adjacencies that people haven’t explored before. So that’s the way I think strategically about it. And then your question is one of the several pillars of execution, which is what are the things that we have to do to actually get after that. Some of those things are structural, some of them are incentive based, some people based, some of them are organizational based.
And so we’re going to approach all of those different pillars so that we ultimately attack that strategy effectively, and we’re very committed to doing it.Operator Moving on to Gerard Cassidy with RBC.Gerard Cassidy Good morning, gentlemen. Can you — Robin, around the debt ceiling that’s coming up for this country, what type of risks there are for your business if a debt ceiling isn’t negotiated effectively by Congress and the President. Can you — what kind of risk do you see in just that situation developing as point on the operating of the treasury market. We don’t have a crystal ball though, obviously, in terms of how debt ceiling is going to get resolved. And we do think of the Fed and the treasury as clients of ours as well, and we want a seamless experience as much as possible for them and also, of course, for a broader client franchise.And so we’re really doing a couple of things.
number one, we think it’s our responsibility to the system to lean into the dialogue that’s going on in D.C. in a way that can be helpful. And so doing our bit for raising awareness, sort of educating on various things, debt ceiling breach is not the same thing as a government shutdown and making sure that that folks really understand what would happen and some of those consequences. And so we’re spending time there. We obviously spend time with the Fed and the treasury on the topic, as you would imagine.And then internally, really for the benefit of our clients, we’re using all of the lessons learned from the past to update our playbooks. We’re putting in automation on various different things, and we are organized around being very ready to be able to execute come what may.
Now of course, we’re going to take a lot of guidance from the Fed and the Treasury on that as well as we go through it.So there are a whole bunch of different things that we are doing. I will also note that in the background, our own iFlow data, which, as you know, we have quite good insights into market liquidity. It shows that once again, treasury market liquidity isn’t great. The market is a little bit less supported from foreign buyers. We can see that from our iFlow data and all have access to the information on sort of off the run versus on the run it offers, et cetera. And so it’s not great from a starting point, which I think is a cautionary tale to the official sector that we really do want to try to get good outcome on this thing.Gerard Cassidy Very good, Robin.
And then Dermot, more of a technical question. In your average balance sheet, I think in the supplement, it’s Page 7. Can you share with us why is the Fed funds sold yield so high? And the same thing with the Fed funds purchase. The yields one 16.3% in the first quarter and then the Fed funds sold looks like it’s 19.75%. Any particular reason why these seem to be out of line with the rest of the yields in the balance sheet?Dermot McDonogh Gerard, I think that’s kind of largely kind of a gross-up netting issue, but I will get Marius to follow up with you after the call and kind of give you a more detailed explanation.Gerard Cassidy Okay. Yes. It just seems very odd to be so high.Operator We’ll take a question from Brian Bedell with Deutsche Bank.Brian Bedell Great welcome Dermot, looking forward to working with you.
Maybe to the growth outlook for — Can you guys hear me, okay?Robin Vince You’re breaking up for a second, Brian. I think you’ve come back.Brian Bedell Okay. I just wanted to come back to the growth in Pershing and Asset Servicing revenue growth. I heard you loud and clear on the drivers for 1Q as we think about the trajectory over the course of this year, I guess two questions on this. First of all, did you benefit, do you think, from a revenue perspective in those areas on the fee side in March versus January, February? So just to get a sense of how volatility can help the revenue picture?And then secondarily, if you can talk about what you mentioned before in terms of connecting the dots, if you will, and how sort of quickly that can work its way into the revenue picture?
