But first the working capital problem must be fixed. ABN Amro is so
enthusiastic about the possibilities that it has a working capital
division, bringing together skill sets, such as trade finance,
liquidity management, financial markets, asset and cash management.
“Liquidity is extremely tight, so unlocking it has become very
important and may make it possible to raise cash internally rather than
externally,” says Ann Cairns, managing director, working capital, at
ABN Amro.
Shrewd investment bankers could clearly get their hands on a slice of
this capital before it ends up in the pension funds. Do we hear an
M&A deal coming on? We used to, all the time, even when they were
best left undone.
And how far could corporate treasurers be persuaded to drive their
working capital up the yield curve? It’s worth thinking about.
Brian Caplen
