Emerging bonds

The strategic choice of treasurers and institutional investorsCash is backSince 2022, the cash management landscape has been profoundly disrupted. After a decade of negative rates – a period where holding cash was a real cost for companies and institutional investors – the European Central Bank’s monetary normalisation has dramatically changed the game. The ECB deposit rate rose from -0.5% to 4% in just a few quarters, before stabilising around 2% (2.25% since June 2026), with prospects of a gradual increase towards 2.50% by the end of 2026 (Ostrum Asset Management estimates, as of September 2026).This new reality has transformed the perception of cash within finance departments and institutional investment teams. Liquidity is no longer seen as a dormant asset but rather as a true asset class in its own right that deserves strategic attention on par with equities and bonds. In this environment, a key question for any treasurer or institutional investor is: should I use bank deposits or money market funds to manage my liquidity ?

Each month we share the conclusions from the monthly strategy investment committee which provides a summary of Ostrum AM's views on the economy, strategy and markets.