To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices and changes over time.
Key Survey Takeaways
Corporate Investment Policies are a Low Priority
- 41% have not made any changes to their corporate investment policy in the past 2 years.
- Only 23% have updated their investment policy in the past 6 months.
Firms Continue to be Overexposed & Uninsured with their Bank Deposits
- 68% of respondents used bank deposits as short-term investment channels.
- 72% had either no policy limits on uninsured bank deposits, or the limit was over $10 million.
- 39% had a minimum credit rating of BBB+ or lower for uninsured deposits.
Counterparty Exposure is Under Greater Scrutiny
- 78% of respondents collected and reviewed total counterparty exposure in aggregate.
- Bank Deposits & Lines of Credit were the areas most frequently monitored.
Credit Facilities Take Front & Center
- 59% of respondents renegotiated their credit facilities within the last year.
- 50% had more than one maturity date, with 34% intentionally staggering maturity dates.
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Source: 2017 Liquidity Risk Survey – hosted by Capital Advisors Group and Strategic Treasurer