How can banks successfully navigate the US liquidity landscape? BNY Mellon’s Tom Meiman and Sam Schwartzman explore in an article for Global Banking & Finance Review

Over the past 10 years, the US liquidity landscape has faced near zero interest rates. In this unique time of disruption, businesses face further challenges when it comes to navigating the volatile landscape – including the possibility of moving towards a negative rate.

In view of these challenges, Tom Meiman, Product Line Manager for Liquidity Balances and Demand Deposit Account Services, BNY Mellon Treasury Services, and Sam Schwartzman, Head of the IMG Cash Solutions Group, BNY Mellon Markets outlines the importance of optimising excess operating cash.

Read the full story here.

Deutsche Bank’s Lisa Rossi explains to Euromoney why strategic liquidity management is crucial today

Lisa Rossi

At a time when banks are more reluctant than formerly to take short-term deposits from clients with surplus liquidity, Lisa Rossi, Global Head of Liquidity and Investment Product Development and Head of Institutional Cash Management UK at Deutsche Bank, tells Euromoney that strong liquidity management is more important than ever for corporates.

The Euromoney article, entitled “Liquidity management stress causes bank-to-corporate tug of war”, looks at the radically changed liquidity landscape in which corporate treasurers find themselves today.

Rossi, who recently wrote a whitepaper for Deutsche Bank entitled “Liquidity Management: Thriving in a New World” that pinpoints and analyses these relatively new constraints in detail, explains that both banks and corporate treasurers will benefit from understanding each others’ painpoints. While banks must delve into the detail of how their corporate clients’ treasury operations work, “treasurers should prioritise understanding their own operational flows; this will allow them to most effectively manage their short- and medium-term funding, ensuring optimal returns where possible.”

Rossi believes treasurers must learn to act more strategically in this changed world: “Banks have spent time and resources in updating processes. They have invested considerable money into their systems and into increasing automation and information for their clients. This has helped treasurers, in turn, to have more time to spend on the strategic elements of the job.”

To read the full article, please click here. To read Deutsche Bank’s whitepaper, Thriving in a New World, please click here.

Deutsche Bank’s Lisa Rossi talks about the treasury of tomorrow in October’s edition of TFR

In an article for Trade and Forfaiting Review, Rossi, who is global head of liquidity and investment product development and UK head of institutional cash management at Deutsche Bank, says the fundamentals of corporate treasury management have not changed. “There is nothing new about the treasurer’s basic dilemma: liquidity management will always need to strike a balance between having sufficient spare cash, and losing interest that could have been earned on idle cash kept back for contingencies.”

Lisa Rossi“However, negative interest rates,” continues Rossi, “along with the effects of financial regulation, have combined with geopolitical volatility and economic uncertainty to subvert old rules and turn the habits on which treasurers have relied for decades completely upside down.”

“What is new,” Rossi continues, “in our post-crisis financial landscape is the fact that leaving cash on deposit may cost rather than earn a company money. Also, suddenly treasurers face having a bank decline to give a return on cash, because it is the wrong kind of corporate cash (non-operational rather than operational).”

Rossi has recently outlined a fresh approach, and new strategies, for treasurers to follow when managing their companies’ liquidity in the changed financial environment in a white paper she wrote for Deutsche Bank’s global transaction banking unit entitled ”Liquidity Management: Thriving in a New World”.

“These are times for treasurers to look lively, react nimbly and pre-empt developments as best they can,” says Rossi. However, they can be assured of plenty of help from their banks that should now be offering corporate customers one-stop platforms connecting the many kinds of different investments in one place, allowing them to plan, simulate and make customised investments that meet their companies’ specific risk, return and liquidity needs.

The full article in the October 2016 edition of Trade and Forfaiting Review can be read online (with subscription) here.

Deutsche Bank’s white paper “Liquidity Management: Thriving in a New world” can be downloaded for free here.

BNY Mellon’s Gerry Barber discusses liquidity management strategies in FX-MM


5_gerry-barber-bny-mellonIntroduced in the wake of the post-crisis environment, new regulatory requirements, including Basel III, are having a huge impact on liquidity investment – encouraging banks to assess their assets’ composition and consider their customer balances.

Assessing the new terrain for the banking community, Gerry Barber, Managing Director, Regional Head (EMEA) IMG Cash Solutions, BNY Mellon Markets, offers his expertise in FX-MM on how banks can effectively adapt to the regulatory changes. Barber says that banks are introducing new products and incentives that help generate value for both banks and their clients – notably technology offering investment policy control and cash management capabilities.

In this respect, banks can start to implement customised liquidity investment strategies that not only meet the needs of individual businesses, but allow them to optimise their cash flow.

To read the full article, please click here (free FX-MM subscription required).