Liquidity Structures

Liquidity is the lifeblood of an organization, and maintaining adequate liquidity is treasury’s single most important objective. However, inefficient bank structures, inadequate information and local currency restrictions can keep treasury from achieving optimal liquidity management.

Treasury Strategies offers decades of proven global experience in helping organizations maximize liquidity by designing, implementing and optimizing structures for netting, pooling and concentration. Our clients benefit from:

• Economies of scale through centralization
• Efficient operations
• Improved investment yields
• Reduced bank fees

NETTING

Without netting, you’re probably incurring too many transactions. Our expert team will help you build and optimize netting solutions that reduce transaction volume and minimize FX conversions. The result enhances liquidity and lowers costs.

POOLING

Your company may have adequate liquidity, but if it’s in the wrong currency or the wrong location, some of it may be useless. Treasury Strategies helps clients avoid such issues by establishing pooling arrangements — either physical or notional. Such arrangements typically improve working capital, reduce FX conversion spreads and reduce fees.

CASH FORECASTING

Effective cash forecasting is one of the toughest challenges facing treasury. There are issues with data collection, data precision and timing differences. However, it’s a necessary ingredient for informed investment and borrowing decisions. So how do you get the right data? And once you have the data, how do you model it?

Our team brings extensive experience in cash forecasting. We can design and implement a new methodology, or optimize an existing program, to help you achieve:

• Increased investment income
• Lower borrowing costs
• Lower cost of capital
• Early warning capabilities for major cash surpluses or deficits
• Greater staff productivity

Treasury Strategies has helped numerous organizations with their forecasts. Our team knows what works and what doesn’t.