Navigating volatility: How corporate treasurers can build resilience, diversify liquidity, and harness data for smarter funding

Volatility is not a stranger to the corporate treasurer. In an era where economic cycles seem to accelerate and global shocks reverberate through capital markets with unprecedented speed, the challenge of securing reliable and cost-effective funding - and doing so with a resilient investor base - has never been greater. 

• Diversify funding sources: Move beyond traditional bond issuance by cultivating a broad investor base and exploring private credit for flexibility and resilience during market disruptions. 
• Harness data for smarter decisions: Use real-time analytics and tools for benchmarking, scenario modelling, and monitoring investor composition to anticipate risks and optimize funding strategies. 
• Build a future-ready treasury: Shift from reactive to proactive by challenging advisors with data-driven insights, streamlining processes, and maintaining vigilance against activist investors to protect governance and liquidity.

The role of the treasurer has evolved: they are now critical architects of financial strategy, facing expectations not just to find the lowest borrowing costs, but also to anticipate risks, broaden funding options, and communicate transparently with C-suite and board members about exposures, opportunities, and threats.

Gone are the days when a single bond issuance, placed with a handful of bank partners and insurance funds, was sufficient. Today’s investors are savvier, regulations are stricter, and market swings can upend even the best-laid funding plans. Corporate treasurers must construct capital structures that weather volatility and adapt to shifting investor appetites. This means more than just timing the market as it’s also about diversification, data-driven decision-making, and proactive engagement with a broad spectrum of stakeholders.

One of the core lessons from recent market disruptions is the importance of cultivating a diverse and well-informed investor base. Relying too heavily on a single investor type, for example, hedge funds, or a small cadre of institutional buyers, can expose an issuer to concentration risk. If those holders pivot, liquidity can dry up, refinancing costs can jump, and the company may face unwelcome scrutiny. A classic case: companies caught flat-footed by activist investors building significant positions due to opaque or overly concentrated ownership structures.

A healthy mix of institutional, including pension funds, mutual funds, insurance companies, and sovereign wealth funds, as well as even retail bondholders, creates a more stable demand profile. It also improves secondary market liquidity and makes it harder for a single party to accumulate enough influence to drive disruptive change. For listed corporates, this is a powerful shield against unwanted activism and a testament to prudent treasury management.

While public bond markets remain the backbone of corporate funding, the rise of private credit offers new avenues for treasurers seeking flexibility and speed. Private debt investment managers can deliver bespoke solutions when public markets are dislocated or when traditional banks hesitate.

Private credit investors are often more willing to negotiate covenants, tailor repayment schedules, and provide funding for complex situations. For treasurers, mixing public or private bond issuance with private credit not only diversifies sources of liquidity, but also introduces competitive tension into funding discussions. This can drive better terms, promote innovation, and ensure that the company always has a “plan B” should market windows abruptly close.

With an expanding array of funding options comes the need for clarity, speed, and precision in decision-making. The days of relying solely on the advice of syndicate banks are fading. Today, best-in-class treasurers supplement external counsel with their own rigorous analysis, using real-time market data, peer benchmarking, and scenario modelling, for example, leveraging LSEG Workspace to give internal teams a 360-degree view of their funding landscape.

• Benchmark company’s debt against both peers and the broader market, assessing spreads, maturities, and investor composition.
• Track bondholder registers and monitor shifts in the investor base in real-time, highlighting the emergence of activist investors or concentration risks before they become threats.
• Simulate hypothetical funding scenarios—comparing public, private, and hybrid structures—to identify optimal strategies under various market conditions.
• Analyse issuance windows, pricing trends, and demand signals to time the market more effectively.
• Prepare board-ready reporting packs with live data and clear analytics, ensuring leadership is informed and in control.

The role of the corporate treasurer is more complex than ever, but also more strategically important. Success in today’s volatile markets demands a combination of robust investor diversification, smart liquidity management (including access to private credit), and a relentless commitment to data-driven decision-making.

LSEG Workspace stands at the intersection of all these trends, arming treasurers with the insights, tools, and confidence they need to secure optimal funding, challenge their partners, and shield their companies from unseen risks. In the end, the best defence against volatility is preparation. With the right data at your fingertips, corporate treasurers can turn uncertainty into opportunity.