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Cash & Liquidity Management
Published  22 MIN READ

The Ultimate Short-Term Investment Stress Test: Lessons From Covid-19

Treasurers were finding it hard enough to know where to invest their short-term cash before the pandemic hit. Now, the pressure is even greater. TMI speaks to five industry experts to discover how treasury professionals are responding to the financial impacts of Covid-19. We also ask what treasurers can do to ensure they have the right mix of short-term investments today, and take a look at the future of money market funds, post-pandemic.

Eleanor Hill (EH): How has the Covid-19 pandemic impacted treasurers’ behaviour around short-term investments thus far?

Alastair Sewell (AS): The pandemic has led to several notable effects. Number one, we have seen – in a broad sense – investors moving away from riskier assets and moving into less risky assets. This includes allocations to money market funds [MMFs] and anecdotal reports of inflows to gold exchange traded funds [ETFs], for example.