Home bias

Cash management - investment.

A tendency to invest relatively greater proportions of funds domestically, in a domestic currency, or both.

European corporate treasurers face a shifting investment landscape

"Another significant trend relates to the behaviour of the euro. Strength in the euro over recent months has been supported by increased onshore investment within Europe. European investors are deploying more capital domestically rather than seeking returns abroad. This shift is partially driven by fiscal and defence-related policy changes in countries like Germany, which have increased local government bond yields and encouraged investors to keep capital within the region.

The result is a rise in “home bias” and a temporary appreciation of the euro, although this may reverse as the European Central Bank begins to ease interest rates more aggressively in response to declining inflation."

The Treasurer online 13 June 2025.

See also

• Appreciation
• Capital
• Cash
• Cash management
• Cash reserves
• Corporate
• Currency
• Domestic
• euro
• European Central Bank (ECB)
• Fiscal
• Investment
• Liquidity
• Macroeconomics
• Sandbagging
• Shock

Other resource

• European corporate treasurers face a shifting investment landscape - The Treasurer online 13 June 2025