Why investors should pay more attention to treasury management practices

Investors should include treasury function as a routine, mandatory part of ODD reviews or risk facing a range of unintended consequences.

By Paul Calderone In the years preceding the financial crisis, the abundance of liquidity and leverage allowed managers to pay little attention to operational practices that could boost performance or efficiency. Generally speaking, fund managers were not focused on concentration risks, counterparty exposure or lack of transparency around fee structures,