TMI GLOBAL LIQUIDITY BAROMETER 2022

Edward F Lopez Chief Revenue Officer Calastone The first half of 2022 has been far from plain sailing for CFOs and treasurers, not to mention their short-term investments. Corporate investors are grappling with everything from interest rate and inflationary pressures to the knock-on effect of the Ukraine crisis, regulatory reform, and growing ESG requirements. The significant impact of these rapidly evolving market dynamics is reflected clearly in this Global Liquidity Barometer. Providing a real-life lens on these challenges and opportunities, drawing on data collected from the treasury and wider finance community, this survey report offers a means to understand the present – and glimpse the future – of short-term investing. For example, seven out of ten treasurers are now reconsidering whether US Prime MMFs are the right tools for their needs, in the face of potential regulatory changes. In the same breath, investment policies are also evolving to enable corporates to explore instruments beyond the traditional safe havens of bank deposits and MMFs. Meanwhile, systems integration is becoming more critical than ever in the short-term investment space. In fact, 77% of respondents would like to access and manage their short-term investments via their TMS, and only 13% want to use a portal. Nevertheless, the findings show that 53% are currently using a portal, for want of better technology. These clear gaps between short-term investment desires and reality demonstrate a need for treasurers to look beyond their traditional investment partners and technologies towards solutions that help them make smoother and smarter investments, from their system of choice. There are many other eye-opening statistics in the Barometer results, and we hope you find this report thought-provoking and insightful. We look forward to discussing the findings in more detail with you. INTRODUCTION