Will Fortune Favour the Brave?
With the business world agitated by rising interest rates, inflation, threats of recession, geopolitical instability, and other uncertainties, is it time for treasurers to revisit their investment policies? TMI explores some of the options in the company of a trio of experts asking, in particular, if the search for yield is now on or off the agenda.
In the current trading and economic environment, volatility is the watchword. But as inflation rises around the world, so central bank interest rate hikes seek to hold it in check. For investors, this means that yield is no longer just a distant memory. In an unstable economic environment, does the slightly easier capture of a few more basis points have much appeal for the corporate treasurer, especially as companies have been shoring up their cash positions to ensure ample liquidity?
Co-Founder and COO, CNote
The recent volatility in the market re-elevated the value of cash as a hedge but the inflation concerns bring back the yield conversation, comments Yuliya Tarasava, Co-Founder and COO of impact investment platform CNote. “Given the global forces and events shaping the current environment, plus conditions particular to a corporation’s home or regional markets, we are likely to see some changes in corporate investment strategies within policies.”