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Concerns about future liquidity took a hit this week with an increasingly negative outlook among respondents for accounts receivable, commercial paper and accounts payable.

GTreasury is committed to helping its customers and the industry at large make actionable decisions throughout the COVID-19 pandemic. With that in mind, we are active supporters of the Treasury Coalition, an industry-wide effort led by Strategic Treasurer.

The Treasury Coalition has launched the Global Crisis Monitor, an “immediate and ongoing survey of COVID-19 impact and response.” The survey collects weekly impact and reaction data from corporate treasury professionals around the world to provide flash insights into the current sentiment of the industry.

This week’s Global Crisis Monitor survey was conducted April 1 – 8, 2020. We share here a few of this week’s highlights. This week’s Treasury Coalition Global Crisis Monitor slides are also pasted below.

“Concerns about future liquidity took a hit this week. Many more organizations indicated an increased level of concern with their loan covenants: more than a third of respondents expect business to extend payables; and expectations for the new normal have been pushed out to 8+ months,” said Michele Marvin, global vice president of marketing, GTreasury. “Still, respondents see a light at the end of the tunnel as central bank efforts are viewed positively and as health issues associated with COVID-19 are expected to begin to improve in the coming months.”

Positive outlook:

  • Central bank actions still viewed positively: Respondents continued to feel positive toward central bank actions, although respondents were slightly less positive this week over last.
  • Country responses: Respondents were more positive toward country responses this week over last.

Cautionary and negative outlooks:

  • Continued concerns about liquidity: Similar to last week, organizations reported an increasingly negative outlook for accounts receivable. In addition, commercial paper was negative this week. This week, 32% reported that they were extending their accounts payable.

Timing estimates:

  • Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 slipped to 8 months from now (from 7 months last week).
  • Economic recovery: This week, 76% had a negative outlook of a recovery happening in the next 3 months (down from 79.9% last week) 43% are hopeful of a recovery in the next 12 months (compared to 48.4% last week).

Work from home issues

  • This week, managing staff activities and accessing all necessary IT applications from home were the two largest challenges to maintain normal treasury operations. These were identified by half of the respondents.

Here are key graphics from this week’s report. If you cite or use any of the statistics or graphics in social media or reports, please attribute them to the Treasury Coalition: Global Crisis Monitor.

To participate in this ongoing survey click here.  We are currently collecting perspectives for the April 8  – 14  dataset. You can also sign up to receive the full report each week.

Treasury Coalition Results-4-9-2020-Slide 1     Treasury Coalition Results-4-9-2020-Slide 2

Treasury Coalition Results-4-9-2020-Slide 3     Treasury Coalition Results-4-9-2020-Slide 4

Treasury Coalition Results-4-9-2020-Slide 5     Treasury Coalition Results-4-9-2020-Slide 6