4 ms·
Perhaps they need the money liquid? Or the risk reward ratio is not good? Or they don't have a CFO that can do treasury and the opportunity cost / effort is not
by ArnoVW 5y ago
Perhaps they need the money liquid? Or the risk reward ratio is not good? Or they don't have a CFO that can do treasury and the opportunity cost / effort is not worth it?
- traceroute66 5y ago> Or they don't have a CFO that can do treasury and the opportunity cost / effort is not worth it? What's the CFO going to do when Eurobonds are negative too ? Converting it un-necessarily into another currency introduces exposure to forex risk. "Investing", aside from the risk, is not cash or cash-equivalent, so that's out of the question. Hence the best answer is generally just splitting out into multiple Euro bank accounts.
- blitzar 5y agoInvestors want their business growth and a 10 bagger (or bust) on their money, not paying a c-suite salary for 0.01% interest, or worse, a bunch of greek bonds that someone on the sales desk at Goldmans said was a great buy.