The U.S. economy continues to grow, but the global landscape looks far more bleak. In such an environment, where are U.S.-based multinationals parking their cash?
The 11th annual Liquidity Survey from the Association for Financial Professionals (AFP) offers some answers. In May, the AFP surveyed 787 treasury and finance professionals. Most of these corporate practitioners (55 percent) expect their cash balances to remain constant for the next 12 months, while a fourth expect cash and short-term investment balances to increase.
On average, respondents' companies store 55 percent of their short-term cash in bank deposits and invest another 22 percent in money market funds and Treasuries. The average organization uses 2.4 different investment vehicles. (See Figure 1, below.)
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
