Corporations still turn to securities dealers for most of their liquid investments, but increasingly they are tapping banks and mutual fund companies, a study shows.
In the 12 months through June 30, securities dealers had 63% of the corporate market for short-term investments, such as commercial paper and money market funds, according to the study by Treasury Strategies, Chicago. But that was down from 70% a year earlier.
Banks, meanwhile, grabbed an 24% market share, up from 22%. Mutual funds snared 6%, up from 3%.
Treasury Strategies studied corporate liquidity management at 381 nonfinancial companies with revenues of over $100 million.
"Commercial banks are beginning to respond to pressure to halt the erosion of their asset base," says Anthony Carfang, a partner of Treasury Strategies.
A summary of the study is available at the Treasury Strategies webpage at http://www.treasurystrat.com.