Home

Instant Insights / Treasury in the Time of Coronavirus

The Covid-19 pandemic has thrown treasury teams around the world into a tailspin. From liquidity concerns to supply-chain breakdowns to fears of an impending global recession, treasury sits at the crossroads of the coronavirus's myriad impacts on multinational businesses. Treasury & Risk is committed to helping readers navigate these turbulent times. We have ramped up our coverage of issues related to the pandemic, and this Instant Insights makes that coverage easier to access. Stay well, readers!

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The premiums of short-term commercial paper (CP) yields over risk-free rates surged this week to levels that corporate treasurers haven’t seen since the 2008 financial crisis. Some of the largest and best-known U.S. companies were reported to be drawing down lines of credit in response to the stress in the CP market. The Federal Reserve responded quickly, creating a Commercial Paper Funding Facility (CPFF) with the goal of supporting the ongoing flow of credit to consumers and businesses.

However, a new report from Fitch Ratings indicates that investment-grade U.S. businesses continue to have access to the liquidity they need. The report recognizes that the cost of funding in the CP market has spiked, and that some companies are drawing on revolvers to repay their maturing CP. “We acknowledge companies will be trading into slightly more expensive but longer-tenored debt,” Fitch says.

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:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join 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.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.