Treasury Coalition’s Global Crisis Monitor Survey Results: 03/26/2020

Results from the first Treasury Coalition Global Crisis Monitor Survey show concerns about future liquidity as the COVID-19 pandemic continues to disrupt global markets.

 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 & 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, conducted March 18–24, 2020, had results from 200+ global respondents, with operations in Africa (17.5%), Mid-East (20%), LATAM (30%), APAC (40%), EU (50%), and NAMER (75%). We share here a few of this week’s highlights. This week’s Treasury Coalition Global Crisis Monitor slides below.

Positive outlook:

  • Central bank actions viewed positively: Fed actions, ostensibly shoring up money market funds and pumping liquidity into the system, are major contributors to improving views on the liquidity outlook.
  • Organization responses: Respondents were positive toward organizational and country responses this week.
  • Virus inflection point sits just over one month: The majority of respondents believe the corner will turn in less than one month and a large minority predicts the inflection point will be within 2 to 3 months (with a mean of just over 1 month).

 

Cautionary and negative outlooks:

  • Deepening concerns about liquidity: By a factor of more than 5x, organizations reported a negative outlook for accounts receivables. Outlooks for commercial paper issuance and covenant requirements and material adverse conditions were also negative.
  • Impacts to companies, communities, and families: Respondents had growing concerns over the health of their organizations, their communities, and their families.

 

Timing estimates:

  • Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 is 4 to 6 months.
  • End of health issue: The mean when the impact of the virus starts to diminish is 2 to 3 months.

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.

To participate in this ongoing survey click here.  We are currently collecting perspectives for the April 1 – 7  dataset. You can also sign up to receive the full report each week.

Survey results from the Treasury Coalition Research. See treasurycoalition.com for more information.