After carrying out a 'root and branch' examination of its investment policy, Ahold Group's treasury department now favours alternative products over MMFs.
Fitch questioned 68 European treasurers on the instruments they use for cash investment, with a particular focus on MMFs, and found that many have not adequately anticipated the impact of a potential regulatory move to VNAV.
Separately managed accounts can provide an attractive alternative for treasurers looking to generate higher yields on their excess cash than are available from money market funds.
How can treasurers make their cash work harder for the business in a time when the economic situation remains challenging and risk management figures highly on the treasury agenda?
France, the leading European player in money market management, cannot remain indifferent to the new draft regulation released by the European Commission.
The decision on the part of Latin American companies to allocate at least a portion of their liquidity to USD-denominated products is considered best practice given the volatility that has roiled the region's debt markets in the past.
From a number of perspectives it has become arguably less likely that Credit Rating Agencies (CRAs) will continue to play as significant a role for the money market industry as they done up to this point.