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'Aversion to risk to continue'

06 February 2008 / by None
The current conditions within the credit markets are expected to see corporate treasurers look to minimise risk, it has been claimed.

According to a survey by JPMorgan Asset Management and the Association of Corporate Treasurers, credit market volatility may have seen cash managers choose to "cast their nets wider" to help spread risk.

The organisations noted that last year saw a larger number of corporate treasurers using asset management, trade finance, consultancy and advisory, risk management and pension services.

Robert Deutsch, head of global liquidity at JPMorgan Asset Management, said that there will also be a "need for greater transparency" within the corporate treasurers sector.

"As the survey showed, this should continue to drive: the need for better systems, an increased focus on risk management, and should also continue to favour conservative investment vehicles such as money market funds and bank deposits," he claimed.

In related investment news, Neil Sneddon, deputy manager of F&C Private Equity, recently told a roundtable lunch hosted by the Association of Investment Companies that the current credit market "turbulence" could create new opportunities.

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