With credit being ever harder to find, liquidity management has become a growing concern for corporates of all sizes and in every industry. Curiously, while there is not substantially less liquidity in today's market, liquidity is being stockpiled and is not flowing as freely as in the past. As a result, managing existing and future liquidity -- be that an excess or a lack of liquidity -- is essential for treasurers. Now, however, treasurers are once again cautious in their investing, focusing on safer investments -- sovereign funds and the like -- with the goal of diversification to reduce counterparty risk. There has also been a move by some to bank deposits and other more traditional low-risk options. Treasurers are focused on cash-flow management as they attempt to gain greater clarity into their cash flows to better manage working capital and reduce volatility in incoming and outgoing flows.
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