Are Treasury’s Liquidity Models Preventing More Uptake in Dynamic Discounting?

You'd think corporate treasurers would be all over investing surplus operating cash into their early pay programs, especially in this day of both negative interest rates and the upcoming Securities and Exchange Commission money market rules floating the net asset value of institutional money market funds. The operational requirements of treasury deploying cash in early pay and the relative return of that cash is driven by interest rates. If interest rates are 35bps for investing cash for 180 days, there’s no question an early pay construct from a risk managed perspective seems clear. So why do companies continue to hold fast and true to liquidity models with high hurdles?