How are companies handling excess cash differently today?
Greg: In this lower-rate environment, smaller organizations that don’t have the staff to actively manage their daily liquidity will often defer to the basic bank products. They’re choosing ease, convenience, complete visibility and the safety of higher-credit-rated banks. Companies that have larger treasury staffs will look for a rate of return and manage that very aggressively, but within the confines of seeking safety. For a smaller company, the cost of managing their investment for one or two extra basis points … sometimes the value is not there. Fred: I agree. Uncertainty has caused people to invest shorter and be tentative. No one really knows what to expect of the capital markets right now.
