Sign In
Sign In
A perfect storm could be brewing for treasuries with lots of cash. Companies have unprecedented amounts of accumulated cash sitting in bank accounts, protected by unlimited Federal Deposit Insurance Corp. coverage if the accounts don’t earn interest. But the Transaction Account Guarantee (TAG) program that provides this safe harbor is set to expire at year-end. Normally the cash could flow into money-market fund (MMF) accounts, treasurers’ favorite alternative to bank balances, but the Securities and Exchange Commission is weighing new regulations for money funds that many treasury executives say would make them toxic. A huge wave of money could be rolling toward an unknown shore. Safety is not threatened, but moving that much cash requires planning.
Recommended Stories
Covid-19 Impacts on Trade
April activity on a supply chain finance platform indicates how the pandemic is affecting specific industries and regions.
Lease Modifications Rising Due to Economic Uncertainty
Covid-19 has led many companies to renegotiate certain aspects of their leases on long-lived assets; accounting for those changes may be challenging.
Search for Solutions as the Tsunami Approaches
Companies that may require a loan modification in the next few months should be looking, right now, at exactly what covenant relief they will need, and what concessions lenders may demand in exchange.
Resource Center
Interactive Asset
Sponsored by Serrala
Preparing your treasury department for what lies ahead means knowing what tools are available, and what s best for your organization.
Treasury & Risk
Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!
- Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.
Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.