Imagine yourself as a race car driver at the Daytona 500, ready to stomp on the gas pedal as the starter waves the flag, only to find out that there’s no gas in the tank. As the other cars go zooming away, you’re stuck at the starting line with a very red face.
Now consider liquidity analysis and data to be your fuel going into 2022, as you gear up to take advantage of the Federal Reserve’s expected rate hikes next year.
Knowing exactly how much cash your entity needs to put to work is part of your fiduciary duty. Imagine the embarrassment, as rates take off, if you’re left behind earning no income, while others are passing you by, potentially earning 25-50 basis points or more on their cash.
Now is the time to determine your levels of liquidity—and be confident knowing how much cash you can put to work as rates rise.
As the Bank of England and the Central Bank of Norway have already raised their interest rates, imagine having a full tank of liquidity data as you start 2022, so you can be far ahead of the Fed’s interest rate increases.