From Mr Richard Raeburn.

Sir, The suggestion by the chief operating officer of a US money management firm (“Jittery corporate treasurers hand spare cash to money managers”, May 29) that liquidity risk was not an issue for corporates 18 months ago rings very untrue from the perspective of the UK if not much of Europe. Good treasury practice has for years stressed that the “SLY” principle should guide the investment of surplus funds - security, liquidity and yield in that order.