Daily News: April 30, 2012

Treasurers Desperate for Yield in Wake of Near-Zero Rates


According to a story that appeared on CFO.com, the Federal Reserve’s long commitment to a near-zero interest rate posture until at least late 2014 is good news for the financial markets; however, treasurers and CFOs consider the current climate for yield to be a thorn in their side.

Quoting a vice president of fixed income at Bank of the West, the CFO article noted that CFOs and treasurers “are in the most difficult place they have been in their careers. Treasury rates are paltry, and agencies only offer a bit of a pick-up [in yield]. A lot of these [companies] are super, super risk-averse, so they’re scared to do anything out of that realm.” But now companies are starting to take on a little more risk, the source noted. “Maybe that’s a sign of things getting better domestically.”

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