The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Cash balances to fall as treasurers address post-pandemic future

The ongoing market and economic impact of Covid-19 is likely to trigger a more active approach from corporates to their cash strategies.

Photo: iStock

As the Covid-19 pandemic spread across the world in early 2020, corporates headed for the ultimate safe haven: cash.

A global survey of 300 senior executives with cash management responsibilities, published by State Street Global Advisors earlier this year, found that more than two thirds (70%) increased their overall allocations to cash in response to the coronavirus, with most of this additional allocation directed into government money market funds.

“There will clearly not be as much corporate debt issued this year as there was in 2020, so cash balances will drop,” says Kim Hochfeld, the investment manager’s global head of cash business.

“We are also likely to see a rebalance in longer-term corporate debt and commercial paper.”

We are likely to see a rebalance in longer-term corporate debt and commercial paper
Kim Hochfeld, State Street Global Advisors

The report authors suggested the ongoing market and economic impact of the pandemic was likely to trigger a more active approach from corporates to their cash strategies during the next 12 months.

This is evident among corporates that are refinancing their book of debt or repaying debt.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree