In addition, 85 percent of 787 survey respondents cited banks as resources their organizations use to access information about operating cash and short-term investment holdings. This a further endorsement to their confidence in their banking partners.
“Bank relationships continue to grow in level of strategic importance for organizations,” said Jim Kaitz, president and CEO of AFP. “Bank deposits continue to hold the majority of corporate cash and short-term investments, and banks also play a role as sponsor of both onshore and offshore money market funds held by organizations.”
Other key findings include:
- 71 percent of organizations with cash and short-term investment holdings outside the United States maintain most of their holdings in bank-type investments, including certificate of deposits and time deposits.
- 55 percent of corporate cash holdings are maintained at banks.
- Safety of principal continues to be a top priority among investment objectives. The share of treasury and finance professionals reporting safety as a top objective increased from 65 percent in 2015 to 68 percent in 2016.
- With the SEC ruling on money funds taking affect this October, 62 percent of respondents plan to make changes in how they invest in prime funds.
Full results of the survey are available at http://www.afponline.org/liquidity/.