Liquidity & cashflow forecasting
About this course
In-year cashflow profiling, working capital cycles, when liquidity gaps appear. Build a forecast and stress-test it.
What you'll learn
- Liquidity vs solvency
- Building the forecast
- Liquidity ladder
- Stress testing
- Governance & reporting
Part of these pathways
Related courses
- Credit ratings explained
- Bank credit analysis
- CDS spreads
- LA Credit Analysis
- Interest rate risk
- Counterparty concentration risk
Common questions
What is Cashflow forecast?
A rolling projection of expected receipts and payments by date. The single most important operational document a treasury team produces. Drives investment placement, borrowing decisions, and overdraft sizing.
What is Council tax in-year profile?
Most council tax is paid in 10 monthly instalments April–January, leaving February and March as low-receipt months — often a tight liquidity window for billing authorities.
What is Intra-LA borrowing?
Short-term borrowing between local authorities, usually overnight or 1-week, brokered through the LA money-market brokers. Filling a tactical liquidity gap from another council with surplus.
What is Liquidity?
The ability to meet payment obligations as they fall due, with cash or near-cash holdings. For an LA, distinct from solvency — a council can be solvent (assets > liabilities) but illiquid (no cash on the day a salary run is due).
What is Liquidity coverage indicator?
Sector-borrowed term (originally Basel III for banks): the ratio of high-quality liquid assets to next-30-day net outflows. Some treasurers track an analogue informally — e.g. 'liquid investments ÷ 90-day net cash need'.
What is Liquidity ladder?
An investment portfolio structured so that maturities arrive in a sequence that matches expected outflows. Not the same as concentration laddering — this is purely about timing of cash availability.