A Strategic Approach to Managing Cash in a Rising Rate Environment IN PARTNERSHIP WITH CLEARWATER ANALYTICS

Seventy percent of respondents to a NeuGroup survey conducted in partnership with Clearwater Analytics, Going Out the Yield Curve: Benchmarking Investment Strategies, report they do not intend to extend duration.

Key Findings. The accompanying white paper highlights our findings as well as practitioner input from three, follow-up focus groups. Here are the three main takeaways:

Investible cash. Corporate investors expect their significant, strategic cash balances to remain steady or grow this year as they monitor current events and evolving market conditions.

Extending duration. The most common response to recent shifts in the market has been to maintain—or slightly shorten—duration, reflecting concerns about market volatility and rising interest rates.

External managers. The amount of investible cash on the balance sheet continues to play a factor in offering economy of scale to corporates, driving those with smaller portfolios to seek the expertise of external managers.