whitepaper icon

2013 Liquidity Risk Survey

1 min read

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
  • 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

DOWNLOAD SURVEY

Our research is for personal, non-commercial use only. You may not copy, distribute or modify content contained on this Website without prior written authorization from Capital Advisors Group. By viewing this Website and/or downloading its content, you agree to the Terms of Use.

Please click here for disclosure information: Our research is for personal, non-commercial use only. You may not copy, distribute or modify content contained on this Website without prior written authorization from Capital Advisors Group. By viewing this Website and/or downloading its content, you agree to the Terms of Use & Privacy Policy.

Similar Posts

Taking Stock of Japanese Megabanks’ Credit Profiles in Volatile Markets

Taking Stock of Japanese Megabanks’ Credit Profiles in Volatile Markets

Investment Management

4 min read4 min readRecent market turmoil, triggered by the Bank of Japan’s interest rate hike and disappointing US jobs data, has resulted in a sell-off in Japanese megabanks’ stocks. Cash and short-duration bond investors may be wondering if they should worry about these banks’ credit profiles. Here is a balanced analysis to help them make an…

converence table with Capital Advisors Group experts

Registered Investment Advisors vs. Broker-Dealers: Who Should You Work With?

Investment Management

7 min read7 min read Registered Investment Advisors (RIAs) vs. Broker-Dealers (B-Ds): An Overview The services of a registered investment advisor or a broker-dealer should be considered if you are seeking to establish a separately managed account for your institutional cash investments. RIAs that are regulated by the U.S. Securities and Exchange Commission (SEC) have a legal…

dice that all have a single percentage character instead of dots

Putting Cash to Work

Investment Management

11 min read11 min readIntroduction: Higher Rates are Coming to An End Recent comments by Federal Reserve officials indicate that monetary policymakers may soon start lowering short-term rates as inflation and employment data continue to moderate. This shift comes after a period of keeping interest rates more elevated than initially thought. Meanwhile, stockpiles of cash from Covid-era…

Republic First Bank Resolution: Minimal Disruption Expected

Republic First Bank Resolution: Minimal Disruption Expected

Investment Management

2 min read2 min readOn Friday afternoon, the FDIC took the failed Republic First Bank into receivership and the majority of the bank’s assets and liabilities were sold to Fulton Bank on the same day. We do not expect this bank failure to create systemwide turmoil similar to what we experienced in March of 2023 due to…

Negative Rates are No More, But The Era of Big Central Banks Reigns Supreme

Negative Rates are No More, But The Era of Big Central Banks Reigns Supreme

Investment Management

7 min read7 min readIntroduction The Bank of Japan’s (BOJ) meeting last month was perhaps the most consequential central bank meeting of the entire year. The BOJ raised interest rates by 10 bps  to 0-0.10%, all-in-all a small amount in magnitude.  However, this marked the first interest rate increase by the central bank in 17 years. Moreover,…