Cash Management Investment Study

Since the financial crisis of September 2008 in particular, treasurers have increasingly recognised the importance of defining and delivering on the right investment policies. Treasurers need to find appropriate repositories for their cash and maintan access to liquidity in an environment where borrowing continues to be expensive and difficult to source.

The current economic and regulatory challenges have resulted in a complex cash management environment for corporations globally. One element of this is the need to define and deliver on the right investment policies. Counterparty risk has become a particular priority, but with a number of credit rating downgrades, and a growing awareness that no organization is 'too big to fail', companies that have developed large cash balances often struggle to find a sufficient number of counterparty banks and issuers that meet their credit requirements.

The problem of finding appropriate repositories for cash is compounded by the need to maintain access to liquidity in an environment where borrowing is more difficult and expensive. Furthermore, with interest rates remaining at a historic low, treasurers and cash managers are tasked to generate a return on cash to prevent value erosion through inflation and rising prices. 

To help understand investment trends and corporate treasurers' priorities, SunGard conducted an online survey among treasurers globally, which attracted responses from 215 corporations. This included responses from all regions and industries. Download the survey-based Corporate Cash Investment Report to see insights into corporate cash investment policies and transaction methodologies, attitudes toward risk and return, preferred cash investment instrument, and potential shifts in investment decisions in the future.