Recession fears on the riseGreenwich Business News Report:
Finance managers see dwindling returns on cash investments
FinancialWeek (subscription) - New York,NY
Flight to quality will shrink payoff, cash managers say; few, if any, businesses parking their cash in speculative-grade investments
As if you needed it, here’s more proof that finance managers are rejiggering their forecasts in light of the economic downturn.
When Greenwich Associates asked U.S. companies last spring what they expected to earn on their cash investments in 2008, the average response was nearly 5.0%, according to Greenwich’s Chris McDonnell.
The same respondents now say they’ve cut their 2008 targets to an average 3.7%, Greenwich noted in a report issued yesterday...
It’s not hard to figure why companies are reducing their expectations for returns. Given the credit crisis, seeking out higher returns means betting on riskier investments. That holds little appeal for many corporate money managers and treasurers these days...
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