Good morning. CFOs hunting for yield on what are often considerable corporate cash balances now must contend with bank fees on top of low interest rates, the WSJ reports, as big banks are looking for ways to cut unwanted deposits. The developments underscore a deepening conflict over cash. Many businesses have large sums on hand and opportunities to profitably inv! est it appear scarce. But banks don’t want certain kinds of cash either, judging it costly to keep, and some are imposing fees after jawboning customers to move it.
And U.S. government debt brings its own challenges as a cash vehicle. U.S. Treasurys have recently sold at a zero-percent interest rate, as supply has been short in light of the looming U.S. debt ceiling. Some have even speculated that U.S. government debt could eventually be sold at negative rates, with buyers essentially paying for the chance to park cash in a safe spot.
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