Cash yields: Corporates keep it simple as rates rise

Simplicity remains the watchword for treasurers trying to increase returns on their cash reserves.

Cash on US corporate balance sheets has more than tripled since the early 2000s. Despite a recent fall in cash levels, European companies remain under pressure to use their cash to mitigate the effect of rising prices.

At Deutsche Bank, this has translated into increasing demand for creative solutions when deploying short-term cash, with corporates reviewing their investment policies to facilitate instruments beyond the traditional safe havens of bank deposits.

Short term and riskless is the usual approach, with bank deposits the preferred option

Christian Seguineau, Societe Generale

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