Defining your treasury strategy during uncertain times

Understanding the Fed’s programs for small-to-midsize businesses

The effects of COVID-19 have had widespread impact on companies’ financial health. And treasurers have been tasked with leading the charge of managing through volatility to sustain liquidity and maintain operations.

Navigating a crisis and its associated impacts on liquidity and funding requires detailed understanding of various treasury levers available within your company. Whether it’s centralizing approvals for all cash outflows, seeking waivers on debt covenants to accommodate additional funding needs, or implementing a more conservative approach to risk management, treasurers need to be prepared to pull levers as needed to manage liquidity.

If existing levers don’t offer sufficient measures to meet liquidity demands, a number of programs have been announced by the government to assist companies to secure additional funding. Depending on your size and liquidity needs, you may be eligible for these programs.

Navigating the Fed’s programs for large businesses

The Primary Market Credit Facility and the Secondary Market Credit Facility (PMCCF and SMCCF, respectively; together the CCFs) were established by the Federal Reserve to support credit to employers through bond and loan issuances and by providing liquidity to the market for outstanding corporate bonds and ETFs. This piece helps answer questions like:

• How can these programs benefit companies?
• How will the Fed help?
• Are there any caveats?
• Are there any compliance requirements?

Responding to the COVID-19 crisis—and beyond

Public sector treasurers may face several challenges with cash flow as they navigate through the COVID-19 crisis response efforts. Treasurers have a significant responsibility and task ahead of them in leading and developing an efficient cash value chain to maintain operations, as well as sustain crisis response efforts. For many states, a heterogeneous mix of aging and siloed systems and lack of centralization will be a primary barrier to meeting their service objectives and transparency goals. This environment lacks the integration that treasury organizations may need for timely visibility into cash, investment, and debt portfolios and the cross-department collaboration needed to help achieve improved performance and support crisis response efforts.