"Hope you are well - I continue to enjoy the service as always - and hope to attend your next Chart Seminar - are you planning to have one in Ireland in 2012

"A suggestion - when reviewing an instrument or including a new instrument in the chart library it would be really useful if one could add to favourites from the daily bulletin-

Also interesting report attached --The paper was written by a former central banker (Zoltan Polzsar, IMF) and deals with how the $4,400 billion in corporate cash reserves are being invested in the US.

"In short where 20 years ago a large proportion of corporate treasurers were comfortable deploying capital in the banking system today's managers have chosen to invest in US treasury bills with virtually no return. This probably says more about their lack of faith in the banking system rather than the confidence in the US sovereign paper.

"An interesting read none the less and points to how the leading corporate treasurers are choosing to manage risk over generating returns at present."

Eoin Treacy's view Thank you for this illuminating report and your kind words. I look forward to welcoming you to another Chart Seminar but we have no plans to hold one in Dublin next year.

Despite the fact that many multinationals continue to enjoy robust growth and healthy margins, they remain
conservative when planning for the future, at least domestically in the USA and Europe. Uncertainty towards government policy particularly with populists sounding an increasingly hostile tone towards corporate cash piles is one of the central reasons for such reticence. The various banking and credit crises currently plaguing markets are an additional cause for concern since they increase the difficulty in making long-term decisions. This will not always be the case and the massive cash reserves of many corporates will help fuel an investment led recovery if they can be encouraged to mobilise.

The paradox of the bond markets is that the most liquid bonds are generally those of issuers with the most debt. Investors seek the liquidity of Treasuries even as supply increases even as prices rise. Therefore there is always a trade off between value and liquidity. In the short term, investors continue to favour liquidity over yield but it would be a mistake to conclude this will always be the case.