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AFP Guide to Global Short-Term Borrowing

AFP's Liquidity Management Guide to Global Short-Term Borrowing has just been released. The focus is on managing the danger areas such as liquidity risk, market risk, counterparty risk, operational risk, currency risk and covenant risk when borrowing short term.

Much of the report is very general, e.g. "Each company has unique elements that require analysis and deployment of strategies and policies that best fit its organization", but there are also some excellent pieces of advice on:

  • creating a short-term debt policy and strategy covering:
    • what should be included
    • stipulating compliance with various requirements
    • operating procedures
    • cash position forecasting
    • global cash mobilization
  • review of short-term borrowing vehicles
    • money and capital market funding including:
      • tips on choosing a CP dealer
      • case studies from Honeywell and Toyota
      • where to issuer commercial paper
    • trade credit
      • bank loan products
      • leasing
      • arranging a syndicated loan.

AFP's Liquidity Management Guide to Global Short-Term Borrowing, is definitely worth dipping into.

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