Cash management: Safety first in short-term investment

The credit crisis is prompting corporate treasuries to make efficient use of their cash. But it has also thrown up doubts about how secure short-term investment vehicles such as money market funds are. Laurence Neville reports.

Centralization, standardization and consolidation

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LIQUIDITY MANAGEMENT, WHICH includes the mechanics of moving money between subsidiaries as well the investment of that cash, has become immeasurably more important to corporate treasurers in the past year. As credit has become scarcer – and a global economic slowdown has loomed – corporates’ focus has inevitably turned to maximizing the efficient use of their existing cash.

The simplest way to increase working capital is to increase the speed with which cash moves in a company.

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