AFP Survey: Better Operating Cash Flows Mean Bigger Reserves
Corporate treasurers and CFOs continue to build their organizations’ cash reserves in response to improved operating cash flows, according to the 2014 AFP Liquidity Survey, underwritten by RBS Citizens. 36 percent of companies reported rising cash reserves in the last year.
Fed Eyes Exit Fees on Corporate Bonds to Prevent Panics
Fueled by concerns about bond-fund runs after an eventual
tightening of interest rates, Federal Reserve Board officials are reportedly
discussing charging investors a fee for accessing bond funds, according to the Financial Times.
Survey: CFOs More Upbeat, Likely to Increase Spending
Finance executives are increasingly optimistic about the economy and say they are likely to increase spending, according to a new survey. However, this trend is not likely to translate into corporates immediately investing their cash reserves.
Survey: U.S. Businesses Hoarding Less Cash, Spending More
U.S. businesses grew more confident in 1Q2014, significantly slowing the pace of cash accumulation, according to the April 2014 AFP Corporate Cash Indicators™ (AFP CCI), underwritten by State Street Global Advisors. Meanwhile, the indicator for short-term investment aggressiveness jumped three points during the quarter.
Yellen: Fed May Raise Rates by Spring 2015
U.S. Federal Reserve Chair Janet Yellen made some waves in her news conference Wednesday when she said that interest rates may begin to rise about six months after the central bank concludes its bond-purchasing program. With the Fed expected to end quantitative easing in the fall, the rate hike would therefore begin in spring 2015.