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.
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