Treasurers Turn Defensive as Volatility Becomes Business as Usual

Why It Matters

The trend signals a cautious corporate stance that will temper debt‑driven growth and reshape capital‑market dynamics, forcing lenders and investors to adapt to steadier, lower‑volume financing demand.

Key Takeaways

• 72% of treasurers view volatility as business‑as‑usual
• Debt refinancing now starts earlier to secure market windows
• Bank debt share fell to 44%, still dominant funding source
• AI prioritized by 35% of treasurers for cash‑flow forecasting

Pulse Analysis

The latest Corporate Debt and Treasury Report underscores a fundamental shift in how UK‑based treasurers perceive macro‑economic turbulence. Rather than treating shocks as isolated events, 72% now expect ongoing disruption, prompting a move toward longer planning horizons and pre‑emptive refinancing. This proactive stance reduces reliance on perfect market timing and cushions balance sheets against sudden rate hikes or geopolitical upheavals.

Debt strategy reflects this new reality. Companies are extending maturity profiles, using bridge financing, and leaning on private placements and trade finance to diversify away from traditional bank and bond markets. While bank debt remains the anchor at 44% of total funding, its share has slipped, and private placements have risen to 19%, indicating a cautious but broader funding mix. At the same time, appetite for new borrowing to fund acquisitions or capex has dwindled, with only 4% planning debt‑financed deals, as firms prioritize deleveraging and shareholder returns.

Treasury functions are also expanding beyond cash management. AI and automation have entered the top‑three priorities for 35% of respondents, primarily to improve cash‑flow forecasting and operational efficiency. Cybersecurity concerns now rank alongside interest‑rate risk, reflecting heightened awareness of digital threats. Meanwhile, the use of FX derivatives is set to increase, signaling greater attention to currency volatility in global supply chains. Collectively, these trends point to a treasury landscape that is more strategic, technology‑driven, and resilient, shaping the capital‑allocation decisions of corporations throughout 2026 and beyond.