Clearwater recently polled over 150 corporate treasurers managing more than $1.5 trillion in AUM to uncover insights into the corporate liquidity market. The full results from the poll, along with accompanying analysis, are available here: Clearwater Flash Poll: Federal Funds Interest Rates and Investment Strategies.
Here are five of the trends we saw from the poll results.
1. Interest Rate Expectations
A significant 67% of respondents anticipate that the Federal Reserve will increase interest rates over the next quarter. However, despite the strong consensus that rates will continue to rise, there was a small minority of respondents who indicated that they believe rates will decrease over the next few months.
2. Yield Curve Predictions
The inversion of the yield curve in June 2023 caused a split in opinion. About half the respondents foresee a change by year-end, while the other half believe the inversion will persist or worsen.
3. Portfolio Positioning
Corporate treasurers reported a mix of strategies for managing their portfolios. There was no clear consensus on duration/maturity, credit quality, or the use of structured securities. This diversity underscores the complexity of the current financial landscape.
4. ESG Considerations
ESG is clearly making waves in the corporate world. While only 17% of the respondents are meaningfully considering it, 44% are giving it some thought, and 23% are exploring it. Clearly, ESG is in play and here to stay.
5. Treasury Management Systems (TMS)
A resounding message from our survey is the significant role that technology, particularly TMS, is playing in liquidity management. The use of advanced tools is becoming an integral part of the corporate liquidity landscape. Tools for treasurers continue to grow and evolve, including the Clearwater solution. Speak to an expert today to learn more about how Clearwater is adapting to the needs of corporate treasurers.
To dive deeper into these trends, download the full report: Clearwater Flash Poll: Federal Funds Interest Rates and Investment Strategies.