Maturity Buckets Strategy: Short, Medium & Long-Term Debt Allocation for Corporate Treasury Liquidity & Risk Management
Maturity Buckets Strategy: Short, Medium & Long-Term Debt Allocation for Corporate Treasury Liquidity & Risk Management Key Takeaways Liquidity Protection : Maturity buckets create a structured framework that ensures you always have acces to cash when needed, preventing liquidity crunches during market volatility or economic downturns. This approach helps companies avoid forced borrowing at unfavorable terms . Risk Reduction : By staggering debt maturities across short, medium, and long-term buckets, companies can minimize refinancing risk, reduce interest rate exposure, and avoid concentration in any single maturity period. This strategy addresses both funding liquidity risk and market liquidity risk . Strategic Flexibility : This approach provides treasurers with clearer visibility into future cash flow needs, enabling better strategic decision-making about investments, capital projects, and growth opportunities while maintaining financial stability . What Maturity Buckets Ac...