Corporate treasurers have their work cut out. Short-term investment options are fading just at a time when they have plenty of cash ready to place in safe but liquid schemes.

Increased regulation of the banking sector under Basel III regulation is expected to see short-term corporate deposits lose favour with banks seeking to ensure greater stability in the assets on their balance sheets. Meanwhile, upcoming money market fund (MMF) regulation on both sides of the Atlantic looks set to impede the appeal of such short-term investment vehicles.