Not surprisingly, most corporate financial execs today are placing safety and liquidity top-of-mind when choosing between investments, says Ben Campbell, president of Capital Advisors Group, a Newton, Mass.-based investment advisory firm. Late last year, in fact, CFOs aggressively moved to quality, as evidenced by Uncle Sam’s December auction of $30 billion worth of 1-month Treasury notes at an interest rate of zero percent. more

“Back to basics” seems to be the watchword among consumers trying to hold on to their checkbooks, as they worry about pink slips, credit card cancellations, and dropping home values. Sales at thrift stores are up; sales at Saks are down. more

Just about everyone has an opinion on the proper role of banking institutions as we go forward in the new economy. One intriguing proposal comes from Laurence Kotlikoff and Christophe Chamley, both professors of economics at Boston University. The duo advocates that banks return to their original functions of lending money and facilitating payments and leave riskier activities, like buying and selling subprime mortgages, to others. more

I’m probably not alone in feeling some relief that 2008 is now behind us, at least when it comes to financial and economic news. Just looking back takes resolve, what with the financial meltdown and a 12-figure bailout, almost-weekly scandals (until a few months ago, how many headlines included Bernie Madoff’s name?), and plunging home sales and rising foreclosures, along with the official declaration of a recession.

To be sure, there were a few bright spots. Americans began, against almost all predictions, driving less and saving more. While it may not last, easing gas prices were a welcome break. At least a few firms posted impressive results even amidst the most challenging environment in decades. McDonald’s introduction of premium coffee, which is giving Starbucks a run for its money, and Apple’s iPod Touch prove that innovation continues to propel companies forward, recession or not.

Significantly for treasurers, the ongoing crises highlighted the critical roles they play in their organizations. “We’ve seen that in a tough environment, companies need strong treasurers,” observes Russell Boyle, head of the financial officers practice with global search firm Egon Zehnder International, Inc. With banks not doing much lending, companies need a tough individual to successfully fund a company, either by finding external cash or squeezing money from operations, Boyle adds. Treasurers’ higher profile is a shift from a year or two ago, when it wasn’t unusual for treasurers’ contributions to their companies’ successes to be overlooked.

If you’ve been reading the print version of Business Finance, you probably know that I’ve been writing about treasury in those pages for several years. This marks the first of a weekly blog on treasury and all things related. I’ll have the opportunity to provide more frequent and timely commentary on topics relevant to corporate treasurers, cash managers, and other financial execs. That includes cash management and cash flow forecasting, foreign exchange, banking relationships, treasury technology, purchasing cards, hedging, investing, treasury careers – in short, just about anything that’s related to treasury.

Along with my work for Business Finance, I’ve been covering corporate and consumer finance for a number of publications for longer than I’d like to admit. I’ve written for AARPBulletin.com, American Way, Bankrate.com, Financial Executive, and a number of other publications. I hold a BS in business administration from Valparaiso University and an MBA from the University of Washington.

I look forward to meeting (at least virtually) some of you, and to getting your comments, ideas, and questions. ###

The languishing economy continues to ensnare more businesses, as seen in the number of business bankruptcies. More than 60,000 businesses went bust last year, the highest level in more than 15 years, according to the American Bankruptcy Institute. Even many companies still up and running aren’t immune from the larger environment. About half of the 4,000 firms participating in a 2009 survey by Roland Berger Strategy Consultants reported difficulties in obtaining new loans. Perhaps that is not surprising, given that a similar number were anticipating sales drops of more than 10 percent. To get through, about 60 percent had chopped personnel costs by more than 10 percent.

Bringing costs into line with sales is critical. However, many of these companies still will face challenges, as their operations and cash flow will be smaller than before, says Drew Koecher, head of KPMG’s U.S. restructuring group. “The right side of the balance sheet will be larger than what they can support.” That can lead to a cascade of negative events, which may devolve to bankruptcy. To manage that risk, CFOs and treasurers will want to right-size their companies’ balance sheets: more