“Increased emphasis on data integrity and analytics is driving companies to explore new solutions in FX exposure management,” said Elizabeth St-Onge, managing director of Treasury Strategies, a management consulting firm specializing in treasury, payments and liquidity. “These solutions are helping corporate treasuries access reliable, timely data for a better understanding of their current FX positions and an improved ability to develop hedging strategies.”

"SunGard Study Reveals Material FX Losses or Gains Reported in Past Twelve Months," PRWeb, May 26, 2010.


“In most cases when banks failed, the government stepped in pretty rapidly to ensure significant losses weren’t incurred for firms with processing arrangements, but you do face disruption of service,” says Mike Gallanis, a partner at consultant Treasury Strategies.

"Treasury & Cash Management - Liquidity Management," Denise Bedell, Global Finance Magazine, April 1, 2010.


“Back in the 1980s, Brazil was beset by hyperinflation and bound by tight regulations and close controls over the currency and capital markets, which hindered money flowing in and out of the country,” Herrick says.

"The Party Gets Started in Brazil," Russ Banham, Treasury and Risk, March 1, 2010.


“This is a huge issue for corporations,” says Dave Robertson, a partner at consultancy Treasury Strategies in Chicago. “As most banks opt out, depositors go from full protection by the U.S. government to direct counterparty risk with their banks, very few of which are rated above A. That’s quite a drop-off.”

"New Game of No TAG," Richard Gamble, Treasury and Risk, February 1, 2010.

Middle-market companies are emulating large corporations by adopting more sophisticated services as they become increasingly affordable and easy to use, reports Laurie McCulley, a principal at Treasury Strategies in Chicago.

"Increasing Mid-Market Visibility," Richard Gamble, Treasury and Risk, February 1, 2010.


Treasury Strategies, a corporate and financial consulting firm, said a floating NAV would "have serious negative ramifications for the money fund industry" by giving the appearance of instability.

"Deutsche Bank Unique in Supporting Floating NAV," Fawn Johnson, Dow Jones Newswires, January 27, 2010.


“We have one client with a revolver that matures in 2011, and they’re already thinking about how they want to handle it,” reports Stephen Kantor, senior consultant at Treasury Strategies in Chicago. A big issue is finding out what non-credit business will be expected by credit banks, he says. “Treasury staffs have to think about how to align a lot of moving parts.”

"Debt Strategy Dilemma," Richard Gamble, Treasury and Risk, January 5, 2010.


All of these are built around a single banking company, at least for now, said Paul LaRock, a principal in the corporate practice at the Chicago consulting firm Treasury Strategies Inc.

"Fast B-to-B Payments May Spur Demand, Despite Fee," Steve Bills, American Banker, December 21, 2009.


In partnering with Fireapps, Sungard "is enhancing its solutions and at the same time really going after a pain point," says Laurie McCulley, a principal in consulting firm Treasury Strategies's technology practice. Gathering data to calculate foreign-exchange exposures and determine optimal hedge strategies is still a struggle for many companies, she says, because standard treasury workstations have only limited capabilities to capture foreign-exchange data. In most cases, the process is manually intensive, with employees manipulating days-old data from various divisions or subsidiaries into spreadsheets.

"Partners in Forex," Alix Stewart, CFO Magazine, December 2, 2009.


Barry Barretta, principal with consulting firm Treasury Strategies, is convinced it's only a matter of time. Fraud risk is at an unprecedented high in the financial services industry, he says, for three reasons: First, there's the economic background; in tough times, fraud perpetrators have more incentive than ever to do bad things. Second, Barretta points to the ongoing distress in the banking industry: "Because banks are just barely keeping the doors open, they don't have money to be investing in sophisticated fraud control systems and risk management staff to stay ahead of what the fraudsters are doing." Third, law enforcement lacks the tools to keep up with the technology that's being deployed by fraudsters today.

"Could Fraudsters Take Down Your Bank?" John Cummings, Business Finance Magazine, November 3, 2009.


“Fraud risk in the industry is at an unprecedented level,” Barry Barretta, a principal at the firm, tells Digital Transactions News.

"Modern Bank Robbers Could Shutter As Many As 10 Financial Institutions," John Stewart, Digital Transaction News, October 22, 2009.


“Volcker has never been a fan of mutual funds. He’s been vehemently opposed them since their inception, referring to them as a ‘shadow banking system.’ What he fails to recognize is that the funds remain a major source of cash for quality borrowers, who will be shut out of issuing commercial paper if the SEC’s proposals see the light of day. These second-tier companies are among the largest, most stable companies in business today, with investment-grade long-term debt ratings. Why punish them by increasing the cost of capital?” - Tony Carfang

"Whacking the System Over Breaking the Buck?," Russ Banham, Treasury and Risk, October 1, 2009.


With the premium on cash that comes in a serious credit crunch, even cash-rich companies would continue to stretch suppliers when possible and sock away all the cash they can get in ultra-safe, low-return investments, reports Paul LaRock, who advises corporate treasuries for Treasury Strategies in Chicago.

"Shoring Up the Weakest Link," Richard Gamble, Treasury and Risk, October 10, 2009.


With information flowing more freely, treasury staffs have become less concerned about which channel delivers which data, McCulley says. They’re just happy that the integration of various channels and the accumulation of a comprehensive global view have become easier, she adds. - Laurie McCulley

"Hungry for a World of Digital Data," Richard Gamble, Treasury and Risk, September 1, 2009.


Elizabeth St-Onge, a managing director at consultancy Treasury Strategies, says corporate scandals like Enron, the Sarbanes-Oxley legislation and current market conditions have combined to focus treasuries on not only financial risks but also operational risks. “One little error in treasury could have a massive impact on the financial well-being of the firm as a whole,” she points out. Meanwhile, St-Onge says, in an increasingly competitive market for treasury technology, “the vendors want to provide the full and complete solutions that corporations are starting to ask for.”

"Working Together on Risk," Susan Kelly, Treasury & Risk, September 1, 2009.


The ebam initiative has a lot of companies thinking about SWIFT that weren’t considering it before, says Laurie McCulley, a principal at consultancy Treasury Strategies in Chicago, noting that bank account administration is “a real pain point for a lot of treasury staffs, whether they have 60 bank accounts or 6,000.” The promise of standardized administration across all accounts at all banks anywhere on the globe now has an enthused following.

"SWIFT's New Sweet Spot," Richard Gamble, Treasury & Risk, September 1, 2009.


The demand for enhanced reporting around counterparty risk has exploded, reports Laurie McCulley, principal at consultancy Treasury Strategies in Chicago, and so has the definition of a counterparty. The banks that hold your cash are now counterparties. So are the banks in your credit syndicate, the issuers of your investments, your customers, your suppliers, your insurance underwriters and your outsourced service providers, she says.

"Hungry for a World of Digital Data," Richard Gamble, Treasury & Risk, September 1, 2009.


“It seems ludicrous to suggest that money market funds are getting a free ride,” Cathy Gregg, partner at Treasury Strategies, told Markets Media Wednesday. “Money market funds are a huge part of the way our broader money markets work in the 21st century.”

"Money Market Funds Draw Fire," Steven Marlin and Riley McDermid, Markets Media, August 26, 2009.


For starters, the current Saturday delivery means that incoming payments usually are ready for processing on either Sunday or early Monday, says Mike Gallanis, CTP and partner with Treasury Strategies, Inc. “Logically speaking, it will alter the distribution of incoming funds slightly.” That means you’ll need to adjust, for instance, computer models that tell you when to concentrate cash, and that use algorithms based on the historical patterns of funds coming into your firm.

"Mail Five Days a Week? The Impact on Treasury," Karen Kroll, BusinessFinance, August 14, 2009.


The consulting firm Treasury Strategies Inc. said businesses spend about $1 trillion per year on their payments needs, but Dan Miner, a principal, said banks garner only about 10% of that."Clearly, electronic invoice presentment and payment is the future," Miner said. "There's high growth potential in thatbusiness, and especially the bigger banks want to be seen as experts."

"To Grow B-to-B Pay Networks, Banks are Ceding Control," Steve Bills, American Banker, August 13, 2009.


“They are an absolutely huge source of cash for high- quality borrowers,” Anthony J. Carfang, a partner at Treasury Strategies Inc., a Chicago financial-consulting firm, said in an interview. “They’re highly efficient and very transparent, reducing the cost of capital.”

"Volcker Says Money-Market Funds Weaken U.S. Financial System," Christopher Condon, Bloomberg, August 25, 2009.


Dan Miner, a principal at the Chicago consulting firm Treasury Strategies Inc., said IAT could become an important way to send money abroad. International payments were once the province of the biggest banks, but "now you're seeing the second tier of banks aggressively going after" the market. "U.S. companies and banks will ultimately embrace international ACH."

"For Global ACH, Small Details Are a Big Issue," Steve Bills, American Banker, August 7, 2009.


“Treasurers aren’t sleeping at night because they don’t know if they can roll over commercial paper,” said Anthony J. Carfang, a partner at Treasury Strategies Inc, a Chicago consulting firm. “They’d rather lock in money for five years and pay a little more.”

"Commercial Paper Falls Most Ever as ConEd Sells Bonds (Update1)," Bryan Keogh and Christopher Condon, Bloomberg, July 16, 2009.


Barry Barretta, a principal at the Chicago consulting firm Treasury Strategies Inc., said the two deals signal an inflection point in the lockbox business, as more banks exit the market.

"As E-Pay Shines, Lockbox Losing Luster," Steve Bills, American Banker, July 20, 2009.

However, if the effort leads to eliminating the $1 stable net-asset-value requirement for the funds that currently protects their principal, corporate treasurers are likely to flee, bringing down the overall volume of such funds, says Cathy Gregg, a principal with consultancy Treasury Strategies, which recently polled treasury executives about the proposal. If money-market funds shrink, Gregg expects the commercial-paper market to shrink correspondingly, particularly for longer loans and lower-quality borrowers. That may force companies to find other sources of short-term financing.

"Bank Reforms Raise Many Questions," Alix Stuart, CFO Magazine, July 15, 2009.

Paul LaRock, a principal at Treasury Strategies, says that many finance executives just didn't understand that the risk profile of ARS had changed. Entering 2008, there was not as much corporate money to soak up the supply. (According to the AFP survey, the number of companies permitting cash investments in ARS declined to 18% in 2008, from 33% a year earlier.) What's more, the weakening of monoline insurance companies meant greater risk from an issuer defaulting.

"Buyer's Remorse," Vincent Ryan, CFO Magazine, July 15, 2009.


One solution, the consulting firm Treasury Strategies suggests, is to put faith in the 80/20 rule; that is, 20% of a company's cash-flow line items are likely to be responsible for 80% of the company's results. So if treasurers focus strictly on the 20% without wasting precious time and effort on the rest, their forecasts may be pretty accurate, according to John Herrick, a principal of the consultancy. And that may be good enough.

"For Good Cash Forecasts, Use the 80/20 Rule," CFO, June 18, 2009.

David C. Robertson, a partner at the consulting firm Treasury Strategies Inc., said that the new Wells would be a stronger competitor to JPMorgan Chase & Co. and Bank of America in domestic cash management. You're going to have three deep-pocket competitors aggressively investing not only in their existing
businesses but also investing in the new Web businesses of the future.

"In Cash Management Equation for Wells Fargo, 2 + 2 = 5," Steve Bills, American Banker, June 5, 2009.

Highly rated companies with bank credit lines are not posting liquid collateral for derivatives, said John Herrick, principal at Treasury Strategies, which advises companies on corporate treasury management. He added: "Companies are going to resist that like crazy."

"Geithner plan fuels cost fears," Aline van Duyn, Financial Times, May 19, 2009.

“Highly rated companies with bank credit lines are not posting liquid collateral for derivatives,” said John Herrick, principal at Treasury Strategies, which advises companies on corporate treasury management. He added: “Companies are going to resist that like crazy.”

"Companies face higher hedging costs," Aline van Duyn, Financial Times, May 18, 2009.

It also cites, Mike Gallanis of Treasury Strategies, "Companies still are willing to take very little risk with their cash and are settling for incredibly low rates.... We definitely have not turned the corner yet."

"Confidence Starting to Build in Money Fund Arena," Crane Data, April 6, 2009.         

Corporates have for a long time been talking about getting global real time visibility to all of their cash. But now more than ever they’re feeling the need.

"Coping with the crisis," Elizabeth St-Onge, Corporates on SWIFT, April 2009.

"There was a demand by treasurers to see the main information that the database holds all in one place,” says Laurie McCulley, a principal at Chicago-based consulting firm Treasury Strategies.

"Revving Up Dashboards," Russ Banham, Treasury & Risk, March 5, 2009.

There was a demand by treasurers to see the main information that the database holds all in one place,” says Laurie McCulley, a principal at Chicago-based consulting firm Treasury Strategies. “Treasurers want the ability to customize the dashboard to their needs,” McCulley says. “Vendors that make this easy are ahead of the curve.

"Revving Up Dashboards," Treasury & Risk, March 1, 2009.


St-Onge’s in-depth understanding of treasury processes coupled with her experience working for a treasury technology provider enables her to understand how technology is applied to solve business problems. An expert in the increasingly important area of SWIFT reporting and payment formats, St-Onge provides clients with advice on domestic and international cash management and treasury technology implementation. She expanded Treasury Strategy’s reach to incorporate work with vendors and large corporations. Previously, she was a consultant with Selkirk Financial Technologies.

"Rising Stars in Rocky Times, 40 Hot Execs Under 40," Treasury & Risk, October 2008.


“It seems if you’re a money fund manager, you’re just guilty by association,” said Cathy Gregg, partner at Treasury Strategies. “Even if the assets you’re holding are of quality, it doesn’t appear that investors care.”

"Nowhere to hide: Money funds not such a safe harbor," Financial Week, September 21, 2008.


“Clearly investors are panicking,” said Cathy Gregg, partner at Treasury Strategies, a consulting firm. “If there was a holding in the fund that was going to severely impair performance, it would make sense.”

"Quiet world of money-market funds turned upside down," Financial Week, September 18, 2008.


According to Tony Carfang, co-founder of Treasury Strategies, just having some of the supply taken out is a good sign for the market. “What you have is a smaller problem, and more liquidity.” he said. “Overall, that's bullish. It increases the likelihood that some of these auctions may begin clearing.”

"ARS deals snub corporate buyers," Financial Week, August 25, 2008.


“I won’t say it’s never done,” said Michael Gallanis, a partner at Treasury Strategies. “You do see it on occasion, but the more common structure is that they aren’t part of the same department.”

"Chrysler’s merging of tech, treasury highlights woes," Financial Week, August 11, 2008.


Goddard’s comments are supported by the data. Chrystal Pozin, a principal at consultancy Treasury Strategies Inc., reports that since 2007, institutional management funds have surged 45% to $9.1 trillion, with much of that growth in money market funds, which have doubled to $420 billion. It has, she reports, been the biggest corporate swing to safety since late 2001, following the terrorist attacks on Sept. 11, 2001. Pozin says she recently hosted a panel where one treasurer confirmed that his firm is spreading its cash around, but because there are such low limits on how much can be put in any single institution, they’re running out of places to park the money. Even bank deposits are being limited by treasuries because of concerns about the risks at the banks themselves, she reports.

"Corporate Investment: A Real Flight to Safety," Treasury & Risk, August 1, 2008.


There is no resolution in sight in many cases, said Michael Gallanis, partner at Treasury Strategies, which is working with many companies which parked their cash in auction rate securities and are now left with illiquid assets.

"Discounts on Offer Leave Disappointed Investors hanging on," Michael Mackenzie and Aline van Duyn, Financial Times, June 4, 2008.

"A lot of people are coming to the realization that there's no light at the end of the tunnel for these." – Cathryn Gregg

"Action-rate Securities: Out of Luck," Aaron Pressman, BusinessWeek, May 27, 2008.


Companies owned $98 billion of the securities on Jan. 1, according to a survey by Treasury Strategies Inc., a Chicago- based firm that advises treasurers on managing their cash. Treasurers bought the bonds instead of money-market funds and U.S. government bills, expecting to earn about 0.25 percentage point in additional yield, the Association for Financial Professionals said in a report last year.

"Auction-Rate Losses Cost Google, UPS $1.8 Billion (Update1)," Michael McDonald and Jeremy R. Cooke, Bloomberg, May 19, 2008.


"These platforms require s lot of care and feeding," he said. "But it doesn't help you complete. It doesn't help you serve your customers better."

"Wells-Bank of America Venture a New Model for ACH," American Banker, May 16, 2008.


"Long-term change is that corporations are moving from handling cash in-house to hiring outside managers," he says, noting the attitude has favored not only money-market funds but bank sweep accounts, which move money in and out of corporate checking accounts in order to keep as much as possible earning attractive yields.

"If they do it properly" - that is manage cash - "it is somewhat costly to do internally," says Carfang.

"Institutional Money Funds See Big Flows, Ian Salisbury, Dow Jones Newswire, April 29, 2008.


"Long-term change is that corporations are moving from handling cash in-house to hiring outside managers," says Anthony Carfang, a partner at Chicago consultancy Treasury Strategies. Noting the attitude has favored not only money-market funds but bank sweep accounts, which move money in and out of corporate checking accounts in order to keep as much as possible earning attractive yields.

"It's a Long, Cold, Cashless Siege," Gretchen Morgenson, New York Times, April 13, 2008.


In the long run it's an outstanding idea, Anthony Carfang, of Treasury Strategies, a consultancy, says of the potential for secondary markets. "But in the short run I don't think large swaths of corporate America are going to want to revalue the entire $300 billion auction-rate securities market based on a secondary market." Carfang says that the fundamental problem with the current market situation is that the wrong types of investors are holding these securities. "These same securities buried in a pension plan or bond fund or insurance company portfolio would be great," he says. The key is to get them into the correct hands so that demand ensues and the market revives itself.

"Buyers Be Where?," Alan Rappeport, CFO,
April 1, 2008.


Anthony J. Carfang, a co-founder of Treasury Strategies, attributes much of the drop to a decline in commercial paper issuance. Many companies issue commercial paper not just to finance operations but to bolster the cash on their balance sheet. “As companies have tightened up, they’re shrinking balance sheets just a little bit by borrowing less,” Mr. Carfang said. “A lot of companies had been directly issuing commercial paper because it was easy to do, and keeping a little cash cushion as a result.” As a result of rising credit costs, said Treasury Strategies partner Dave Robertson, companies have been forced to use excess cash to pay down debt. And the cost increase isn’t limited to commercial paper, he added, noting that issuing debt via the private placement market has also become “significantly more expensive.”

"Corporate Liquidity begins to dry up," Megan Johnston, Financial Week, March 28, 2008.


"This is a sea change. Beneath the surface, there are much deeper changes in the marketplace," said David Robertson, a partner with Treasury Strategies. "We uncovered a massive rebalancing of corporate treasury portfolios. In all, over $1 trillion has been re-allocated by corporate treasurers." Anthony Carfang, another Treasury Strategies partner, said that as a result of the recent market turmoil, corporate treasurers are taking a closer look at securities in their portfolios as well as their investment policies and practices.

"Many are no longer managing their short-term portfolios themselves. Rather, they are utilizing a mix of bank products and money funds," Carfang said.

"U.S. Corporate Liquidity Down 1st time in 10 years," Gertude Chavez-Dreyfuss, Reuters, March 18, 2008.


“That tells us there were some smart treasurers who had their ear to the ground and pulled out before the problems became widespread,” said Anthony J. Carfang, a co-founder and partner at Treasury Strategies. “But from our standpoint, those who stayed in must’ve been missing some signals, because many of their counterparts got out.”

"ARS mess: Few corporate investors escape damage, study finds," Megan Johnston, Financial Week, March 10, 2008.


“If you are managing portfolios internally, you do your own credit analysis; you don’t rely blindly on the ratings agency,” said Anthony J. Carfang, co-founder and partner at consultancy Treasury Strategies.

"Bristol-Myers squibbed by auction-rate bonds," Megan Johnston, Financial Week, February 11, 2008.


Bristol-Myer’s biggest sin apparently: relying on Standard & Poor’s and Moody’s triple AAA ratings, says Tony Carfang, a partner at Treasury Strategies inc. “If a company decides to manage a portfolio on its own, it better do the research itself,” he warns.

There were other missteps. Treasuries that opt to be profit centers also better diversify their portfolios and buy securities from multiple dealers that can give you different views of the market, says Carfang. Better yet, he recommends avoid ARS-type investments, which can be illiquid if auctions fail for lack of bidders. “These instruments are structured with maturities ranging from 10 to 30 years with no put-back to the investor,” he says. “Thus, the structure of the security does not provide for liquidity for terms less than the original maturity.”

For now, consultants reckon, boards and treasurers will take a more conservative stance. “Treasurers don’t get high-fives if they do a few basis points better, but they can get fired if they lose money,” says the banker. They will likely make use of the time to evaluate how best to invest idle cash, possibly reinvesting it in the company, repurchasing shares or providing dividends.

Investment banks that issue or sell ARS products, not surprisingly, take issue with Carfang’s blanket dismissal of these securities. “On balance, as long as companies account for this properly, they usually do come out ahead," says Peter Jankovskis, chief investment officer of Oakbrook Investments LLC. “Even if they look foolish in the short-run, by writing off losses on continuing investments, they can hold the securities until they pay off.”

"The Corporate Treasury -- From Cost Center to Profit Center," Treasury & Risk, February 5, 2008.


“Some of the wiser money managers are riding the downward slide that is resulting from the Fed move in interest rates,” said Mike Gallanis, partner at consulting firm Treasury Strategies. “That lagging effect of the [money-market] funds makes them attractive.”

"Money Funds Still Hot in '08," Megan Johnston, Financial Week, February 4, 2008.


Dave Robertson, a partner at Treasury Strategies, which consults with both banks and corporations, said some RAROC models incorporate the Moody's KMV concept of inferring a company's credit risk from its stock market performance.

"Bank Models put credit in doubt,"Megan Johnston, Financial Week, February 4, 2008.


"Many of the securities that the corporate treasurers thought were perfectly safe in fact are not,'' said Anthony J. Carfang, a partner at Treasury Strategies, a Chicago-based financial consultant. ``No one knows where the bad paper is.''

"Bristol-Meyers, Ciena Losses Show Subprime Infection (Update 2)," Carlton Harrison & Dina Bass, February 1, 2008.

Contact Carlton Harrison or Dina Bass for more information.


In her excellent article “Treasury: The Last Frontier of Automation“, Elizabeth St-Onge of Treasury Strategies explores why treasury technology adoption rates remain low, despite the need for thinly staffed treasuries to optimize the way they handle their ever increasing case loads.

"Treasury system benefits or just another big footprint in the snow?" Rob Price, TreasuryBytes, January 27, 2008.


Total U.S. corporate liquidity now exceeds $5.6 trillion, according results of Treasury Strategies' 2007 Corporate Liquidity Research Program. That continues a growth trend that has seen the total liquidity number rise by nearly $2 trillion since 2000, including another 3 percent increase from 2006 to 2007. With all that cash to invest, liquidity managers are understandably concerned due to the recent turmoil in the financial markets. – Chrystal Pozin

"Finl Exec: A Cure for Liquidity Managers' Subprime Insomnia?," Financial Executive International, January 1, 2008.


Corporates, he agrees with Well Fargo's Young, often deal with multiple banks and a combination of in-house and bank-offered solutions to move money, invest, pay bills and get data into their general ledger. – Dave Robertson

"New Prospects for Corporate Customers," Lauren Bielski, ABA Banking Journal, January, 2008.


“It’s a major rearrangement of the furniture,” says Anthony J. Carfang, founding partner of Treasury Strategies Inc., based in Chicago. “The major players clearly are rethinking their strategies and repositioning themselves for what they expect to be future opportunities.”

"Treasurers Turn the Tables on Banks," Treasury & Risk, September 1, 2007.