The high flow-performance sensitivity in open-end municipal bond funds motivates fund managers to actively manage funding liquidity risk and reduce the costs of flow-driven transactions. Funds with volatile past flows build up liquidity buffers by holding more cash and liquid municipal bonds in their portfolios. Funds rely on cash and liquid securities in flow management. Unconventional liquidity management tools, such as cross-trading between funds in the same family, are used by municipal bond funds in extreme situations. Fund families coordinate cross-trades between open- and low-value closed-end funds only when open-end funds are in distress.

Abstract Background: Cash management means the management of liquidity in order to meet their day-to-day commitment. The result of poor focus on cash management often means that the financial assets are bound. The management of liquidity is not something new but cash management is a modern way of doing that. Cash management is a very broad subject which involves many factors, this paper will focus on examine how the liquidity is managed in Jonsons Byggnads AB, in order to improve the liquidity through cash management thinking. Jonsons Byggnads AB is a local construction firm located in Jönköping. This paper will examine the firm’s liquidity with focus on payment/payout routines, liquidity management, short-term financing and the connection between accounts receivables and payables.   Purpose: The purpose is to examine Jonsons bygg’s liquidity today in order to later recognize which factors within cash management that can strengthen the liquidity position for Jonsons Byggnads AB. Method: This is a qualitative study based examining the liquidity management for Jonsons Byggnads AB. The collection of the data and information was gathered by interviews, observations and balance sheet/income statement (Jonsons Byggnads AB). The interviews were done with Fadi Babil (The owner of Jonsons Byggnads AB) and two other staff members, which have chosen to be anonymous. Fadil Sadiku (Financial advisor at Swedbank) have also been interviewed in order to gather information about various products Swedbank offers to improve the liquidity for Jonsons Byggnads AB. Conclusion: The result of this study showed us that Jonsons Byggnads AB have good liquidity position even though the company does not have anyone employed to manage the liquidity. Even though Jonsons bygg’s liquidity position is healthy, there are some areas that can be improved. Improvements in the payment/payout routines can be done by computerizing the sales ledger system completely and therefore be more efficient and profitable. Connecting the invoices to an account with higher interest is also an approach to be more profitable. Since the accounts being used today have almost no interest.

No / This study examines the impact of financial flexibility on the investment and performance of East Asian firms over the period 1994–2009. We employ a sample of 1,068 firms and place particular emphasis on the periods of the Asian crisis (1997–1998) and the recent credit crisis (2007–2009). The results show that firms can attain financial flexibility, primarily through conservative leverage policies and less commonly by holding large cash balances. Financial flexibility appears to be an important determinant of investment and performance, mainly during the Asian 1997–1998 crisis. In particular, firms that are financially flexible prior to this crisis (1) have a greater ability to take investment opportunities, (2) rely much less on the availability of internal funds to invest, and (3) perform better than less flexible firms during the crisis. Our analysis covering the credit crisis period of 2007–2009 suggests that some of the advantages of flexible firms towards investing persist but are significantly less pronounced over that period. We also find that the value of financial flexibility is region/country specific, which may be explained by the fact that different regions/countries often adopt different macroeconomic policies and operate in diverse economic/legal environments.

[pt] Este trabalho analisa o impacto dos requerimentos de liquidez da Basiléia III na gestão de liquidez dos bancos. A partir de uma base de dados que engloba bancos de todos os países signatários do Comitê de Basiléia III, foram definidos indicadores de liquidez bancária com base nas práticas utilizadas na literatura econômica e que busquem servir de proxies aos indicadores propostos pelo Comitê. Foram então verificados os cronogramas de implementação dos novos requerimentos de liquidez estabelecido por cada país. Acompanhou-se, então, a evolução dos indicadores de liquidez antes e depois do novo requerimento de liquidez instituído pelo Comitê. Foi observado alta estatisticamente relevante nas proxies de liquidez de curto prazo. Por outro lado, o resultado das regressões que buscam acompanhar a evolução de liquidez de longo prazo demonstraram quedas estatisticamente significativas. / [en] This paper analyzes the impact of Basel III liquidity requirements on banks liquidity management. Indicators of bank liquidity were defined based on the practices used in the economic literature and that seek to serve as proxies to the indicators proposed by the Committee. Database was built including banks from all countries that are signatories to the Basel III Committee. The timelines for implementation of the new liquidity requirements established by each country were then verified. The evolution of the liquidity indicators before and after the new liquidity requirement established by the Committee was followed. A statistically significant elevation was observed in short-term liquidity proxies. On the other hand, the result of the regressions that seek to follow the evolution of long-term liquidity showed statistically significant declines.

The purpose of this study is to describe and analyze how manufacturing companies are affected by the electricity crisis and what measures they have taken to maintain liquidity in their operations. To achieve this, the empirical evidence will be based on interviews with manufacturing companies located in electricity area 4. To answer the questions “In what way have manufacturing companies in electricity area 4 been affected during the current electricity crisis?” and “How have these companies changed their operations and managed their liquidity and costs during the electricity crisis?” the study is based on an abductive research and on a qualitative research method. The results of the study shows that companies with variable electricity contracts in combination with an electricity cost that makes up a larger part of their manufacturing cost have suffered the most from a liquidity point of view. The most common measures taken by the companies were to increase the selling price, reduce their electricity use and become more self-sufficient in electricity.

Stora koncerner med verksamhet i flera företag och inte sällan i flera länder kan gynnas av att styra hela koncernens ekonomi från en gemensam enhet. Moderbolaget har olika stor insyn i dotterbolagens verksamheter beroende på koncernens storlek och organisationsstruktur och därmed kan centralisering av likviditetsstyrningen ske på olika sätt. Syftet med uppsatsen är att ur ett ledarskapsperspektiv studera hur centraliserad likviditetsstyrning utförs samt hur det kan påverka koncerner. För att uppnå syftet har kvalitativa intervjuer genomförts med ekonomicheferna i fyra koncerner. Studien har därmed gjorts ur ett ledarskapsperspektiv och personliga intervjuer har gjorts för att få en djupare förståelse för hur koncernerna väljer att centralisera sin likviditetsstyrning samt vilken påverkan det har. Koncernerna som intervjuats har i hög grad centraliserad likviditetsstyrning och de viktigaste besluten fattas i huvudsak från en och samma enhet, resultatet av intervjuerna visar att centraliserad likviditetsstyrning skapar ökad översikt och kontroll. Ekonomicheferna anser sig ha god insyn i dotterbolagens verksamheter och kan därmed fatta de beslut som är de bästa för koncernen.  För att få en ökad förståelse för hur cash pooling kan användas som instrument för att centralisera likviditetsstyrningen intervjuades även två banker. Cash pooling ger en översiktlig bild över koncernens likviditet genom interna överföringar mellan konton med intern ränta. Därmed används det befintliga kapitalet på ett effektivt sätt innan externa lån behöver tas. Tre av koncernerna använder sig av cash pooling och de anser att det skapar en överskådlighet över koncernens likviditet samt en ökad effektivitet eftersom antalet externa banklån reduceras. Bankerna är eniga och menar att cash pooling skapar en samlad bild över koncernens likviditet. Utöver cash pooling tar studien även upp begrepp som centralisering, cash management och treasury management, vilka även de kan ses som sätt att effektivisera likviditetsstyrningen i en koncern. / Business groups with companies active in several countries can benefit from managing the entire group’s economy from one single entity. The parent company’s transparency of its subsidiaries is depending on the size and the organizational structure of the concern. Therefore, centralization of the liquidity can be done in several ways. The purpose of the study aims to clarify how centralization of the liquidity can be performed and what consequences it gives the concern. The study has been conducted through the leaders’ perspectives of the business groups. Interviews have been carried out with the financial chiefs of four business groups, in order to get a deeper knowledge of how the liquidity is centralized and what effects it brings. The business groups have in a great extent centralized their liquidity to one entity where the most important decisions are made. The financial chiefs consider themselves to have the right knowledge to make decisions with the concern’s best interest in mind. To get a deeper knowledge about centralization of liquidity from the perspectives of the banks, and also to get awareness of cash pooling and how it is used, the decision of interviewing two banks as well, was made. Cash pooling is an instrument for optimizing the liquidity within business groups and thereby enabling an effective management of cash, and reducing the need for external borrowings. Three out of the four concerns interviewed are users of cash pooling and they all consider it an effective instrument that creates transparency and control over the liquidity. The banks agree and say that it gives a more composed picture of the liquidity of the concern, which simplifies the contact with the bank. In addition to cash pooling, the study also discusses cash management and treasury management. In conclusion, it is clear to say that there are considerable advantages, such as a greater transparency and control, when a corporate group is centralizing its liquidity. It also creates legitimacy against banks.

The object of this work is cash management of concrete business. The objective is an analysis of this system and illustration his working on plan of year 2010. The work is intent on valuation of metods, instruments and sources, these are useful for cash management. It solves at first time a temporary absence of own sources for financing of business needs. The result of this work is proposal of improvement and recommendation for efficiency of system.

Bakgrund: Det råder ett alltmer hårt företagsklimat i dagens samhälle, därför är det viktigt att företag har en så god hantering av affärsprocesserna i verksamheten som möjligt. Det område som då blir meningsfullt att arbeta med är cash management. Cash management kan användas av företag för att förbättra både lönsamhet och finansiering. Inom ämnet ryms många olika delar, bland annat inbetalningar, utbetalningar, kundfordringar, och likviditetshantering. I nära samband med cash management uppkommer också riskhantering. Riskhantering har aldrig varit en lätt uppgift och särskilt inte för små företag. För att bemöta risker på ett så bra sätt som möjligt krävs det att företagen utformar och applicerar effektiva metoder. Det är av stor betydelse att förebygga risker snarare än att angripa dem när de väl uppstår. Syfte: Syftet med studien är att undersöka hur cash management samt risker relaterat till cash management hanteras i små företag. Teoretisk utgångspunkt: Arbetets teoretiska utgångspunkt är cash management och dess olika delar samt tillhörande risker. De identifierade olika delarna är inbetalningar, utbetalningar, kredittid, kundfordringar, likviditetsplanering, placering av likvida överskott och likviditetsreserv. De tillhörande riskerna utgörs av kreditrisk, likviditetsrisk, ränterisk och valutarisk. Metod: Studien utgår från en kvalitativ ansats eftersom tidigare forskning visat att detta är en lämplig metod för att undersöka problemområdet. Studiens empiri är insamlad genom semistrukturerade intervjuer med tio olika småföretag. Slutsatser: Studien pekar på att småföretag arbetar med cash management på olika sätt, i olika utsträckning och att det finns utrymme för förbättring. Även riskhantering i små företag ser olika ut samt att små företag är exponerade olika mycket för olika risker. Vi ser kopplingar mellan riskhantering och cash management i de små företagen och oftast går hantering av goda cash management-rutiner ihop med en minskad riskexponering. / Background: There is an increasingly rough business climate in today’s society, therefore it is important for enterprises to have a good management of the business processes as possible. What becomes meaningful to work with then is cash management. Cash management can be used by enterprises to improve both profitability and financing. The topic includes different parts such as payments, accounts receivable and liquidity management. Also risk management is often associated with cash management. Risk management has never been an easy task and especially not for small enterprises. To deal with this it is required for the enterprises to design and apply efficient methods and strategies. It is of great importance to prevent these risks than deal with them once they occur. Purpose: The purpose of the study is to research how cash management and risks related to cash management are managed in small enterprises. Theoretical starting point: The theoretical starting point of the study is cash management and its different elements and associated risks. The different identified elements are payments,credit period, accounts receivables, liquidity management, investment of liquid surpluses and liquidity reserve. The related risks are credit risk, liquidity risk, interest rate risk and currency risk. Method: The study is based on a quantitative approach since previous studies shown that this is an appropriate method in order to research the issue. The empirical data is collected by semi-structured interviews with ten different small enterprises. Conclusions: The study shows that small enterprises work with cash management differently, in different extent and there is room for improvements. Also risk management in small enterprises tends to differ and the enterprises are exposed in different extent for various risks. There is a connection between risk management and cash management in small enterprisesand good management of cash often tends to minimize risk exposure.

Master's thesis is devoted to the evaluation of the bank's liquidity. JSC "Alfa-Bank" was considered as the object of research. With a lack of financial resources, the bank has proposed ways to reduce liquidity risks. The paper studies the mechanisms of liquidity risk management and describes the direction of their regulation. / Магистерская диссертация посвящена вопросу oценке ликвиднocти банка. В качестве объекта исследования рассматривался АО «Альфа-банк». При недостатке финансовых ресурсов банку предложены пути cнижения риcкoв ликвидности. В работе изучены мехaнизмы упрaвления риcкaми ликвиднocти и охарактеризованы нaпрaвления пo их регулирoвaнию.

Made available in DSpace on 2010-04-20T20:48:33Z (GMT). No. of bitstreams: 3 107984.pdf.jpg: 12765 bytes, checksum: 5d4cdda4904fd3d64f1b98e1cce1c1f6 (MD5) 107984.pdf: 1037424 bytes, checksum: b58290ed3c6d905a1910ca947de28c79 (MD5) 107984.pdf.txt: 236519 bytes, checksum: fd11a827a48f7fb1f697282cb1d59511 (MD5) Previous issue date: 2007-01-24T00:00:00Z / This work develops an integrated model for optimal asset allocation in commercial banks that incorporates uncertain liquidity constraints that are currently ignored by RAROC and EVA models. While the economic profit accounts for the opportunity cost of risky assets, what may even incorporate a liquidity discount, it neglects the risk of failure due to the lack of sufficient funds to cope with unexpected cash demands arising from bank runs, drawdowns, or market, credit and operational losses, what may happen along with credit rationing episodes or systemic level dry ups. Given a liquidity constraint that can incorporate those factors, there is a probability Pf that there will be a fail and the liquidity constraint will not hold, resulting in a value loss for the bank, represented by a stochastic failure loss Lf. The total economic profit, given the possibility of loss due to the lack of liquidity, is then optimized, resulting in a short-term asset allocation scheme that integrates market, credit and operational risks in the liquidity management of banks. Even though a general approach is suggested through simulation, it is provided a closed form solution, under some simplifying assumptions, that is thoroughly discussed. An analysis of stylized facts about liquidity in Brazil suggests that the current decreasing trend in interest rates have some influence in the reduction of liquid assets as a proportion of deposits, increasing the relevance of liquidity management models such as the one proposed in this work. The model was then applied to Brazilian banks data resulting in an estimated 8.5% yearly gain over the optimization without liquidity considerations. Even though it is not possible to establish the significance of this result due to the approximations used, its sensibility to changes in the parameters is not high. After increasing and decreasing all parameters by 20%, the gain change ranged from 6.3% to 8.8%. Gains may reach 11.1% if the amount of liquid resources available for allocation is multiplied by four, and even if the loss given failure is reduced by 8.6 times there still are gains of about 0.5% a year in the return on equity, giving empirical indications that the model may have a relevant impact over the value creation in banks. / Neste trabalho é desenvolvido um modelo integrado para alocação ótima de ativos em bancos comerciais que incorpora restrições incertas de liquidez, atualmente ignoradas por modelos de RAROC e EVA. Se por um lado o lucro econômico considera o custo de oportunidade de ativos com risco, o que pode inclusive incorporar um prêmio de liquidez, por outro é negligenciado o risco de falha devido à falta de fundos suficientes para enfrentar demandas inesperadas de caixa, oriundas de corridas, saques excepcionais de linhas de crédito, ou perdas de crédito, de mercado, ou operacionais, o que pode ocorrer conjuntamente com episódios de racionamento de crédito interbancário ou crises sistêmicas de liquidez. Dada uma restrição de liquidez que pode incorporar tais fatores, há uma probabilidade Pf de que haja uma falha e a restrição de liquidez não seja obedecida, resultando em perda de valor para o banco, representada pela perda estocástica por falha Lf. O lucro econômico total, dada a possibilidade de perda devido à falta de liquidez, é então dinamicamente otimizado, resultando em um esquema de alocação de curto prazo capaz de integrar riscos de mercado, de crédito e operacionais na gestão de liquidez em bancos comerciais. Embora uma abordagem geral via simulação seja sugerida, também é apresentada uma solução fechada, válida sob certos pressupostos simplificadores, cuja otimização é discutida detalhadamente. Uma análise de fatos estilizados é apresentada a seguir, havendo indícios de que a tendência corrente de redução das taxas de juros no Brasil tem influenciado a queda no nível de ativos líquidos como proporção dos depósitos, aumentando a relevância dos modelos de gestão de liquidez, como o aqui proposto. Também foi feita uma implementação do modelo com dados de bancos brasileiros da qual estimou-se um ganho de cerca de 8,5% ao ano no retorno sobre o patrimônio líquido em relação à otimização que não leva em conta as perdas por falta de liquidez. Embora não seja possível estabelecer a significância do resultado em virtude das aproximações utilizadas, observou-se que a sensibilidade deste ganho não é alta em relação a variações nos parâmetros, que modificados de 20%, para mais e para menos, produziram ganhos entre 6,3% e 8,8% ao ano. Os ganhos chegam a 11,1% se o volume de recursos líquidos disponíveis para alocação for aumentado em quatro vezes e mesmo se a perda dada uma falha for reduzida de 8,6 vezes ainda há ganhos anuais de cerca de 0,5% no retorno sobre o patrimônio líquido, dando indícios empíricos de que o modelo possa ter impacto relevante na criação de valor em bancos.