Yesterday, Chicago Treasurer Kurt Summers issued a press release announcing significantly higher investment returns for the first half of 2016. The announcement cited improved cash management practices for the higher returns.
Cash management may sound boring, but it isn’t. Putting liquid assets to work in seeking return while protecting their safety is a fundamental challenge for treasurers in both the private and public sectors.
Sometimes, it can be a little too easy to buy higher returns in the short run with higher risk. We’ll be taking a closer look if that is the case here.
But we appreciate Summers' new periodic reporting on investment developments, regardless. This is a valuable practice for citizens and taxpayers.
For some historical background, including the curious origins of the fundamentals of accounting for “cash” in modern GAAP for the US, see “Accounting for Turbulence in the Value of Deposits,” an article I wrote for American Banker a couple years ago.