Even before the Covid-19 crisis, short-term interest rates were falling. Using a combination of swap strategies and emerging market deposits, large US companies are keeping cash and bond returns above market rates.
There was over $12 trillion of corporate debt outstanding in three major currencies when the coronavirus spread worldwide. Aside from the personal burden on them and their teams, treasurers are now facing a significant financial threat.
Scepticism around new providers and technologies persists among treasurers, who are wary of hype and demand practical use cases. While some corporates are discovering advantages by being early adopters, the skills profile of the treasury function must adapt to take full advantage.