Companies Still Piling Up Cash

Investments in money funds increase as companies brace for expiration of TAG, SunGard says.

From the perspective of treasury and finance departments, the uncertainties just keep coming, whether it’s the European debt crisis, the fiscal cliff or new regulations. Those uncertainties are encouraging a significant portion of companies to continue to build their cash reserves, which were already at historically high levels.

A recent SunGard survey of treasury executives at more than 200 corporations worldwide shows that 37% increased their cash reserves over the last 12 months, while 40% said there was no material change in their cash holdings and 23% said they had decreased their cash reserves.


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