Solving the Short-Term Investment Dilemma

Keenen, Bruce G.
November 2003
Financial Executive;Nov2003, Vol. 19 Issue 8, p58
Academic Journal
This article focuses on the role of corporate treasurers in managing short-term investments. The author presents a discussion on automated repurchase investment accounts and examines some of the challenges facing corporate treasurers such as dealing with a slow economy and an abundance of cash on hand which can present cash management problems. The author discusses some of the short-term cash management alternatives available to treasures such as money market savings accounts, noting that money markets often times have higher yields and provide full liquidity while sweep accounts allow for an earnings maximization on excess available balances without taking on significant risk. The ideal solution allows treasures to maintain liquidity in a low interest rate environment.


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