Survey goal
To shed light on treasury departments’ efforts to mitigate liquidity risk in short-term cash investment, debt and forecasting practices.
Summary of 2013 Survey
- Treasurer’s Mindset: “Surpising Complacency with Bank Exposures”
- Context:
- FDIC insurance dropped from Unlimited t0 $250,000
- Dodd-Frank
- Bank deterioration continues
- Select Highlights:
- Debt:
- Continued increase in staggering facilitites
- Fewer loan covenants
- Forecasting:
- Improvements in forecasting across all company size
- Bank deposits remain large
- Investments:
- 42% have no maximum dollar on bank deposits
- Debt:
- Counterparty Exposures:
- More firms tracking a range of exposure (credit, investments, deals)
- The need to monitor, still recognize as critical
- Calibration improving with a long way to go
- Very limited action contrast with other risks