Short-term cash investment

Treasury evaluates security, liquidity, maturity, currency and return when investing surplus cash. A forecast surplus may be temporary or uncertain, so avoid locking funds away beyond the expected need without acceptable access. Counterparty limits reduce concentration risk. Deposits, government instruments and other money-market products have different risks and terms; a short maturity does not make every product risk-free. The highest yield can reflect greater credit, liquidity or complexity risk. Coordinate investment with borrowing so the business does not needlessly borrow at high rates while holding inaccessible lower-yield assets.