A quick look at what’s on International Treasurer’s radar screen this week. 

Several topics came out of this week’s International Treasurer editorial meeting, including following up on recent news reports of liquidity issues brewing in the corporate bond market; a summary of this week’s US Chamber of Commerce end-user “fly-in.” Also, IT is looking into profiling Bank of America Merrill Lynch’s growing Global Transaction Services (GTS) business in Latin America. Finally, a look at the state of capital controls throughout the world.

Corp. liquidity drought. A recent item in the FT on liquidity problems in the corporate bond market had us thinking about how corporates will fund themselves going forward if the problem intensifies. The issue at hand, according to the FT, is that “America’s $8tn corporate debt market is running out of its lifeblood – liquidity.” This has the effect of increasing borrowing costs if liquidity continues declining. This is happening because banks are in the process of cleaning out their balance sheets as they prepare for coming capital and liquidity rules. One asset they’re shedding (or not loading up on) is corporate debt.

One solution to this, according to news reports, would be to launch a new electronic bond trading platform that would allow participants trade bonds freely with one another. State Street Global Advisors, Columbia Management, Fidelity, Loomis Sayles and Wellington Management were among those said to be involved in the project.

End-User Confab. On Tuesday the US Chamber of Commerce hosted 19 companies and their treasurers for a meeting on end-user exemption.  The so-called Coalition for Derivatives End-Users called the meeting to urge Congress to enact amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to protect companies that use derivatives to manage business risk. Treasurers from the companies met with members of the US Senate to show support implementing the much-needed amendments to the Dodd-Frank Act.

We’ll take a look at what transpired and what kinds of issues remain for corporate derivative users.

BAML GTS in LatAm. We’ll take a look at Bank of America Merrill Lynch’s latest Latin America efforts. LatAm is a growing focus for many banks, including BBVA, which we profiled in 2011 (see related story here).  According to a recent BAML presentation, LatAm is major is a priority market for the bank and is in the process of realigning its regional structures there. This will provide greater funding and resource support for the region’s growth. This should be welcome news to companies that are in the area but find bank offerings limited.

Capital Controls. Speaking of Latin America, capital controls are becoming the go-to tool many LatAm countries – e.g., Brazil (see related story here), Argentina (tax inspectors with dollar-sniffing dogs??) – use to keep a lid on inflation and other ills of too much cash pouring into or out of a country. But with Europe in crisis and the possibility of bank runs in Greece, Italy and Spain happening at any moment, what will Europe do to control capital? Will they impose onerous controls? Will the US follow suit?