17th March 2021 – Treasury teams are keeping cash safe and liquid in the first half of 2021 but are going further out on the curve in search of yield, according to a recent survey from ICD, treasury’s trusted independent portal provider of money market funds and other short-term investments.
According to the ICD 2021 Client Survey, 70% of Americas respondents said they are expanding their investment portfolios to include new products beyond traditional cash investments. This sentiment is in keeping with a poll from the ICD webinar, Short-Term Investment Options in a Low-Rate Environment, in which the 71% of attendees said the same.
“With more visibility into operating cash requirements, companies are feeling more confident with T+1 versus same-day liquidity in exchange for a higher return,” says ICD Chief Executive Officer Tory Hazard. “Currently these products are yielding significantly more than traditional cash investments.” According to Crane Data, short duration bond funds, for example, were yielding 32 times government money market funds, on average, as of February 28, 2021.
Over 150 treasury professionals from the U.S., Canada, the UK and Europe participated in the ICD 2021 Client Survey, providing insights on trends in institutional investments and technology. Across all regions, 61% said they are maintaining or increasing their cash balances.
To see the full ICD 2021 Client Survey report, visit ICD Resources. For more information about alternative investments on ICD portal, visit icdportal.info/icd-portal/investing/ or contact info@icdportal.com
