Caution Reigns: Treasury Teams Double Down on Safety as Cash Accumulation Slows
2025 AFP Liquidity Survey reveals a strong preference for secure, liquid assets, with 61% of organizations focused on capital preservation in response to volatile markets
According to the 2025 Association for Financial Professionals (AFP) Liquidity Survey, 61% of organizations identified safety as their foremost objective for short-term investments, significantly outpacing liquidity (35%) and yield (5%) as priorities. Even so, the emphasis on liquidity increased by five percentage points from the previous year, while the focus on yield remained stable. The survey reflects a cautious stance among treasury leaders in response to heightened risk and uncertainty. Most organizations are maintaining their cash reserves at existing levels, with about 60% taking a wait-and-see approach.
“The results of the 2025 AFP Liquidity Survey signal a strong sense of caution among treasury leaders as organizations react to elevated levels of risk and uncertainty,” said Jim Kaitz, President & CEO of AFP. “Maintaining strong relationships with banking and money fund partners will be critical for organizations to remain adaptable.”
Key Takeaways
Access to cash remains robust, with a continued focus on bank deposits, MMFs, and Treasuries for liquidity.
There is a slight decrease in the rate of cash accumulation, and a growing share of organizations are seeing cash balances decline.
Real-time liquidity is a developing area, but operational uncertainties remain.
Economic uncertainty is prompting organizations—especially net borrowers—to closely monitor and sometimes reduce cash balances.
Strong banking relationships and safe, liquid investment vehicles are central to current cash access strategies
Cash Holdings Trends
In the past 12 months (through March 2025), 38% of organizations reported an increase in U.S. cash holdings, which is down from 44% the previous year. Meanwhile, 16% reported a decrease, up from 13% last year, and 46% saw no significant change
For cash and short-term balances outside the U.S., 65% of organizations reported no change, 20% saw an increase, and 15% a decrease, mirroring last year’s trends
Organizations that are net borrowers expect their cash balances to be most affected by economic uncertainty, with 26% predicting a decrease in the next two quarters.
Access to Cash and Liquidity Management
Most organizations maintain a large share of their balances in vehicles that provide immediate or near-immediate access to cash, reflecting the continued prioritization of safety and liquidity over yield
The report notes some uncertainty regarding the timing of achieving real-time liquidity, emphasizing reliance on the Federal Reserve to provide the necessary infrastructure for real-time cash movement in the future
Treasury professionals continue to value strong banking relationships, with banks remaining the primary depositories for U.S.-based cash and short-term investments
Impact of Economic Uncertainty
Organizations that are net borrowers are especially vulnerable: 26% anticipate a decrease in cash balances over the next two quarters due to economic uncertainty
The overall trend suggests that while some companies are increasing their cash holdings, there is a broader shift toward using cash to support business needs or maintaining current levels rather than aggressively building reserves
Policy Changes and New Products
Nearly 30% of organizations are considering changes to their investment policies in the coming year. Both private (9%) and public (12%) companies are looking at adding money market fund exchange-traded funds (ETFs) to their portfolios.
The findings are based on responses from 254 U.S.-based treasury professionals across a wide range of industries and organization sizes, collected in March 2025. Additional insights were gathered through a follow-up survey in late May to early June 2025 to capture evolving economic conditions.