Liquidity Management in Treasury: Understanding and Balancing Liquidity with Investment Opportunities

Managing liquidity is not just about ensuring a company can meet its short-term obligations; it’s also about optimizing cash reserves to maximize returns without taking on unnecessary risk.

Treasurers need to strike a delicate balance between:

• Maintaining solvency and financial flexibility
• Mitigating risk through diversification and forecasting
• Enhancing yield on surplus cash with instruments like money market funds (MMFs)

With evolving market conditions and increasing regulatory scrutiny, how can treasurers fine-tune their approach to liquidity management?

Read the full article, created in collaboration with Aviva Investors, to explore key strategies and best practices.