The general feeling amongst Treasury professionals for 2012 is one of resignation; resignation of the fact that we are entering into a new year that will more than likely be increasingly akin to those years that have gone before. The misplaced optimism that may have been evident in the preceding years since the start of the credit crunch (and subsequent sovereign debt crisis) is gone, as all participants in the market are now punch drunk with the negative sentiment and information coming out of the Eurozone and wider global landscape. Indeed, the most frustrating thing for the treasury sector is that the biggest factor impacting their performance is probably totally outside of their control.
The powers that be have continually displayed an unwillingness to grasp the nettle, to the extent that the garden is now overrun with ’Urtica dioica’, with copious stinging hairs that could potentially deliver a whole lot of pain for the global economy. There is a sense that there is a plan and framework being developed for the medium to long-term sustainability of the Euro, but that the immediate threats are being allowed to fester and undermine the whole single-currency project. The can has been kicked down the road, which is all well and good, until you run out of road. It is against this backdrop of global uncertainty that the treasury sector must participate in 2012.Share