October 20, 2020
How Corporates Are Measuring Counterparty Risk as Cash Builds
Companies reviewing limits amid Covid have varied approaches to calculating risk thresholds.The abundance of cash corporates have collected on their balance sheets to deal with pandemic-related volatility has prompted some to review their counterparty risk limits.Participants at a recent NeuGroup meeting of large-cap companies described a variety of approaches to the issue, which should remain especially relevant for treasury teams reducing the size of bank groups, a trend discussed in recent meetings. A member explained that higher deposit rates at…