Not surprisingly, liquidity is still the primary concern of treasury professionals who participated in the second weekly Treasury Coalition Global Crisis Monitor Survey.
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 25–31, 2020. We share here a few of this week’s highlights. This week’s Treasury Coalition Global Crisis Monitor slides below.
This week found that respondents are much more focused on securing, monitoring and forecasting liquidity.
- Central bank actions viewed positively: Respondents continued to feel positive toward central bank actions. Moves by central banks to provide liquidity provided an even higher positive perception than in the week prior.
- Organization responses: Respondents continued to be positive toward organizational and country responses this week, although the numbers were slightly down week over week.
- Improved view of commercial paper and bank lines of credit: Respondents are more positive around commercial paper and bank lines of credit this week (last week respondents were much more concerned about them).
Cautionary and negative outlooks:
- Deepening concerns about liquidity: Similar to last week, organizations reported a negative outlook for accounts receivable.
- Impacts to companies, communities, and families: Respondents had continuing concerns over the health of their organizations, their communities, and their families.
- Financial normalcy: The mean of when businesses return to the state they were in before COVID-19 slipped from 4 to 6 months last week to 7 months this week.
- Economic recovery: This week, 79.9% of companies said they have a negative outlook of a recovery in the next 3 months. 48.4% are hopeful of a recovery in 12 months.
- Staff safety: Results from this week showed that staff safety protocols remain the number one concern.
- Access to liquidity: Respondents were more concerned about the access to liquidity this week over last. Respondents cited a number of activities to address this, including expansion of short-term loans, drawing down credit lines (or converting other holdings to cash), reforecasting cash flows, and more monitoring of cash flows and the cash conversion cycle.
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.