Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013 - (Page 9)

INTERVIEW CDS to be volatile given that it reflects essentially short term concerns on the bank’s ability to access funding. The volatility can be particularly acute when the ratings are shifting from Investment Grade into the HY universe. From a long term perspective we view ratings as more accurate tool to measure the bank’s credit worthiness. With some triple “A” money market funds closed and extremely low (even zero) return, what are you proposing as alternative investments for corporates? We have a proven and long dated track record in managing a range of nonrated liquidity solutions based on a strong in-house credit risk analysis and an extensive risk monitoring. Investors ready to accept slightly more extensive guidelines with a marginally longer investment horizon have the possibility to shift into funds belonging to the money market category. Do you think that corporates are re-considering and possibly revisiting their short term investment policies with the current low interest rates environment ? At the moment corporates have re-considered their short term investment policies by increasing their investments in funds belonging to the money market category to the detriment of short term bank deposits or certificate of deposits. They thus obtain higher returns with a high level of liquidity whilst getting a better diversification. To a much lesser extent, customers with a much longer visibility on their cash have been seizing good opportunities in short term bond enhanced products. — APR / MAY / JUNE N°81 — Today, there is a gap between bank credit ratings and CDS’s. What is the best way for corporates to assess the counterparty risk ? Are market instruments like CDS’s, more accurate than ratings ? From our perspective credit ratings are designed principally to provide relative rankings among issuers and do not constitute a measure of absolute default probability. This is especially the case where banks are concerned insofar the risk of default is low but the loss given default rate is very high. In times of stress we expect the ” LE MAGAZINE DU TRESORIER / TREASURER MAGAZINE “ In a low interest rate environment, with coming new regulations and uncertainty in indicators or ratings, are there tracks to explore to better invest your cash surplus? Patrick Siméon and Ibra Wane, respectively Head of Money Market Management and Strategist at Amundi, agreed to give their view about the present financial context as well as to reveal some of their pieces of advice. 2013 Patrick Siméon and Ibra Wane, Amundi 9

Table des matières de la publication Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013

INTERVIEW - Patrick Siméon and Ibra Wane, Amundi
15 MINUTES WITH - Jörg Wiemer -Treasury Intelligence Solutions - TIS
The Financial Risk Observatory

Trésorier/Treasurer magazine - n°81 - 2ème trimestre 2013