Full viral blast – yet reflection begins

As we proved recently, it takes a full article just to list the many aspects of treasury work that are impacted by the covid-19 epidemic. Treasury news sites do assist readers in getting an overview, however, and some are extrapolating changes into how they could impact our future. Will we see a reversion of tree decades’ drive to globalise supply chains? And could decreased fossil emissions even lead to slowing global warming? 

Treasury & Risk is collecting its corona-related stories under a common theme to make it all more comprehensible. One article sums up the suddenly super-hot topic of supply-chain risk: how complex global supply chains and just-in-time fine-tuning may now have turned to bite themselves in their tails. Another article lines out how risks of economic losses will be split between parties to an agreement, depending on what it says in the contract. It is written from a US perspective, but may also help European readers structure the subject. 

Could do good – long term

The news site is also seeing “banks quietly discourage companies from tapping lines of credit”. (The last week, however, has seen yield spreads come back down a little below distress levels, after the passing of a 2-trillion-dollar support package in the US.)

A blog post on CTM File predicts that a large part of the shift from travel to digital meetings will stay permanently after lockdowns have been lifted. All in all, the changes could produce a reduction in global warming, it reckons. 

The Global Treasurer sees the virus put treasurers across the world on alert for contract counterparty risks.