Survey from IDC Financial Insights and Treasury Strategies Examines Evolution of Liquidity Management

North American Corporations Plan for Strategic Investments in Next Six Months Due to Better Than Expected Operating Results

FRAMINGHAM, MA – November 15, 2010 – IDC Financial Insights and Treasury Strategies today announced the release of a new report, Business Strategy: Liquidity (Doc #FIN225458), based on a joint survey exploring how North American treasurers are managing short-term liquidity. According to the report, liquidity management has evolved beyond tracking positions, allocating investments and complying with investment policies. Treasurers now must also think strategically about their cash balances in this unpredictable and unfriendly investment environment.

"Treasurers have become increasingly conservative and have shored up their short-term investment balances to stay highly liquid and minimize risk," said Jeanne Capachin, Research Vice President, Corporate Treasury and Spending Guides, IDC Financial Insights. "The trend to increase liquidity is tailing off. North American corporations plan to make strategic investments in the next six months due to a more favorable economic outlook."

Key findings of the study include the following:

— Short-term liquidity portfolios have increased, primarily due to better

than expected operating results – especially for mid-corporate, net


— Corporate cash balances have shifted into DDA accounts because

Treasurers currently lack alternative investments that offer sufficient

yield at an attractive level of risk and convenience.

— Corporations are beginning to act upon their plans to deploy excess cash

through capital investments and acquisitions over the next 12 to 24

months. Excess cash was primarily generated through operational

improvements and decreased inventories.

The study presents results from an online survey of 198 Corporate Treasurers fielded in the summer of 2010 by IDC Financial Insights and Treasury Strategies as well as a survey conducted by Treasury Strategies that included an additional 300 respondents focusing on plans for the deployment of excess balances. The report provides analysis and insights into the historic changes to short-term liquidity portfolios and how corporate treasurers plan to restructure their portfolios in 2011.

For additional information about this study, or to arrange a one-on-one briefing with Jeanne Capachin, please contact Sarah Murray at 781-794-3214 or To arrange a briefing with Scott Musial of Treasury Strategies, contact Kyle O'Connor at 312-628-6927 or

Reports are available to qualified members of the media. For information on purchasing reports, contact; reporters should email

About IDC Financial Insights

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. IDC Financial Insights is headquartered in Framingham, Massachusetts. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit [], email, or call 508-620-5533. Visit the IDC Financial Insights Community at [].

About Treasury Strategies, Inc.

Treasury Strategies, Inc. is the leading Treasury consulting firm working with corporations and financial services providers. Our experience and thought leadership in treasury management, working capital management, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. For more information, please visit