Medical factors should drive when lockdowns end

This week’s survey results show that medical factors are viewed as vastly more important than financial factors in determining when to ease lockdown restrictions

Treasury Coalition’s Global Crisis Monitor Survey Results: April 24, 2020

“This week, nine out of ten global finance professionals said that lockdowns should be gradually lifted when medical issues such as broader testing and broad availability of medication and treatment are available,” said Michele Marvin, vice president at GTreasury, a supporter of the Treasury Coalition. “To those in the finance industry, medical factors (90%) are vastly more important than financial factors (37%) in determining when to ease lockdown restrictions.”

Positive outlook:

  • Debt and liquidity: Respondents saw an improving liquidity situation across the board. Banks line of credit, central bank liquidity, and for the first time, the issuance of commercial paper were all seen as positive this week.
  • Impact of Covid-19 on company: A trend increases as respondents felt slight improvement of the impact of COVID-19 on their company over the previous week.
  • Level of concern for community and family: There was a slight improvement on levels of concern for community and family for the fourth week in a row.

Cautionary and negative outlooks:

  • Continued concerns about accounts payable: Similar to last week, organizations reported a negative outlook for accounts payable. However, the outlook was better this week (7x negative this week compared to 10x last week)

Timing estimates:

  • Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 stayed the same this week nine months from now.
  • Economic recovery: This week, 65.5% had a negative outlook of a recovery happening in the next three months (down from 73 percent last week). 39 percent are hopeful of a recovery in the next 12 months (compared to 42.5 percent last week).

To participate in this ongoing survey click here.  We are currently collecting perspectives for the April 22 – 28  dataset. You can also sign up to receive the full report each week.