Trending in Healthcare Treasury and Capital Markets

The Fed is predicting that inflationary pressures are transitory, but healthcare leaders face the business challenge of major expense inputs that have moved to new levels based on pressures that may have a relatively long tail.

Signs point to higher interest rates. It is uncertain how markets will react, but for healthcare organizations, holistic balance sheet management is the best response.

A central management challenge is balancing the dynamic between operations and balance sheet, complicated by uncertainty as to whether any changes are permanent, transitory, or something in between.

Federal Reserve Chairman Jerome Powell suggested that the Fed would start tapering its bond purchasing activities in November with the plan of fully winding down the element of market support by mid-2022, at which point they might begin to raise short-term rates.

The Federal Reserve’s concentrated power over the capital markets has helped it respond to recent crises, but different manifestations of concentration risk emerge after the crisis is over.

The pathway through the period of widespread volatility we face will require making resiliency a central organizational objective, and the only way to achieve financial resiliency is through effective resource allocation.

Organizations should focus on strategic risk management to identify and ultimately address the risks representing the major financial headwinds the organization confronts.

Insights from our most recent conversation with Fitch, Moody’s, and Standard & Poor’s.

A review of movements in the capital markets and credit rating actions through Q1 and Q2.

A well thought out technology plan is an important element in building a strategic Treasury function.

Policy responses to COVID may be laying the foundation for systemic tail risk.