2. Association for Financial Professionals
4520 East-West Highway, Suite 750
Bethesda, MD 20814
Phone 301.907.2862
Fax 301.907.2864
www.AFPonline.org
2014 AFP
Liquidity Survey
Introduction and Key Findings
July 2014
Underwritten by
3. There are signs that the market disruptions of recent years may be moving into the rear-view
mirror. In today’s economic climate, financial professionals are showing signs of confidence and
optimism as they plan for the road ahead and continue to seek insights around best practices
for attaining corporate objectives while preserving and leveraging corporate capital. As the
sponsor of the AFP Liquidity Survey for the third consecutive year, RBS Citizens understands
the importance of bringing the latest information and ideas to the marketplace.
This year’s survey received 740 responses from a diverse group of companies and will help to
gauge the latest ideas financial managers have and the challenges and opportunities they face
in today’s marketplace. Here are some of the themes that were noteworthy throughout the
survey and tell us what respondents do, how they do it - and what “keeps them up at night”.
Instant replay Safety and liquidity continue to be the top priorities among survey respondents
at 68% and 28%, respectively. As long as yield remains scarce in the marketplace it remains a
very distant third.
All time high Even with the end of TAG (Transaction Account Guarantee) program and
unlimited FDIC insurance coverage no longer available, an all-time high of 52% of all corporate
cash remains with banks. This is a record percentage for the history of the AFP Liquidity Survey.
This is not surprising, given the lack of attractive alternatives in the market, and a viable ECR
(Earnings Credit Rate) available to help offset cash management fees.
No resolution Money market fund regulation questions are still swirling, leaving uncertainty the
only descriptor for this vehicle.
Light at the end? With rough roads hopefully in the rear-view mirror, there are good signs
of increased optimism down the road coming from respondents. U.S. businesses appear to be
more confident. According to the AFP Corporate Cash Indicators™, U.S. businesses are willing to
put their cash to work toward increased capital expenditures, debt pay downs, and new merger
and acquisition activity - all boding well for future economic growth.
At RBS Citizens and Citizens Bank, we want to be your guide to help you take advantage of
every opportunity to maintain safety and liquidity and help you prepare and position your cash
management needs for better times that are hopefully on the horizon.
We welcome any feedback to the survey and the opportunity to work with you to meet your
business objectives.
Sincerely,
Matthew B. Richardson
Senior Vice President, Treasury Solutions