Treasurers diversify cash investment in search of yield

The era of low rates has led treasury teams managing cash surpluses to diversify their assets and exposures.

Continued low interest rates, a build-up of excess cash that companies cannot easily re-invest in expanding production – but that they don’t want to re-distribute to shareholders – and regulatory pressures have forced change in how treasurers manage liquidity. 

What started as adapting to extraordinary market conditions at a point in the cycle now begins to look more like a long-term and secular change in approach.

Natalie-Cross-160x186
Natalie Cross,
Invesco


Natalie Cross, client portfolio manager at Invesco, says: “The persistence of low returns has meant that treasury teams now need to think more broadly about their cash investments.

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