International Treasurer: Peer Group Highlights

Peer Insight: LATMPG Winter 2012 Meeting

Thu, 10 May 2012 01:40:21 GMT

Thrusting and Parrying in LatAm’s Tricky Environment

The thirteenth meeting of the LATMPG included country-specific discussions of Brazil, Argentina, Mexico and Peru, in addition to broader topics of counterparty risk and bank connectivity.

1) Brazil and Argentina Updates. Both Brazil and Argentina regulatory frameworks are complex and change frequently.

Key Takeaway: In Brazil, the IOF reduction to zero on FX purchases is good, but the IOF on investments is still there. In Argentina, a requirement to balance imports and exports could force firms to manufacture locally or reduce imports.

2) SWIFT and Bank Connectivity. An overview of connectivity options.

Key Takeaway: Treasury has made significant strides toward process standardization and automation, in order to decrease manual processing, mitigate risk and reduce costs. Part of this effort relies on standardized messaging, which at least in theory would allow companies to change banks as needed.

3) Mexico and Peru Updates. Members discussed treasury and risk management challenges in Mexico and Peru.

Key Takeaway: In Mexico, current market conditions are favorable for MNCs to explore alternative fundraising. Limited local bank capabilities present challenges in Peru.

4) Counterparty Risk. Members discussed methods of tracking and limiting exposure to any given bank counterparty.

Key Takeaway: Judgment and caution must compensate when using a lower-rated bank.

Peer Insight: TIMPG 2011 Fall Meeting Briefing

Mon, 09 Apr 2012 02:05:01 GMT

A wide range of topics on the agenda included the following when the NeuGroup’s T30 cametogether for its fall 2011 meeting:

Peer Insight: T30 2011 Fall Meeting Briefing

Tue, 20 Mar 2012 01:19:36 GMT

A wide range of topics on the agenda included the following when the NeuGroup’s T30 cametogether for its fall 2011 meeting:

Peer Insight: Tech20 2011 Annual Meeting

Sat, 11 Feb 2012 19:31:23 GMT

Assessing the Challenges to Treasury

At their annual meeting in 2011, members of the Tech 20 explored, among other issues, how the European sovereign debt crisis and its impact on banks was affecting the global economy, financial markets and a wide range of tech treasurers’ activities.

1) Bank Impacts from Euro Crisis. The need to de-lever and alter businesses in response to new rules on risk will impact all banks in some way.

Key Takeaway: Not all banks will be equally frank in communicating the impact on your relationship — so, be frank in prompting them.

2) Responding to Round Two of the Crisis. Member responses largely followed on the lessons of the first round of the crisis, i.e., focusing more on counterparty risk.

Key Takeaway: Effectively managing the necessary exceptions to risk limits and other policy constraints is the key to success in a crisis.

3) Offshore RMB. USD liquidity shortages in Asia, along with concerns about the euro give the offshore RMB a unique window of opportunity to become more prominent.

Key Takeaway: Promoting international usage of RMB is part of a long-term plan that will not be shelved by interim setbacks.

4) Investing Offshore Cash. Interest in further diversification of cash investments is driving certain Tech20 members to invest more in non-USD assets.

Key Takeaway: Key European banks offer quality asset management with good local credit-risk analysis.

Peer Insight: ATPG 2011 Pilot Meeting

Wed, 18 Jan 2012 20:26:49 GMT

The NeuGroup Launches Treasury Peer Group in Asia

The pilot meeting of the Asia Treasurers’ Peer Group, sponsored by BNP Paribas, brought together thirteen companies across a variety of industries—pharma, consumer goods, manufacturing and tech. Topics discussed included:

1) Offshore RMB Market and Opportunities. One member discussed his company’s dim sum bond issue.

Key Takeaway: The process of issuing offshore bonds is becoming more streamlined; banks can help clear hurdles for use-of-proceeds onshore as well as the transfer of funds.

2) Capital and Liquidity Management. A discussion of member companies’ approaches and a market overview by the BNP’s C.G. Lai.

Key Takeaway: As cash builds up in the region, a concern is the lack of available investment options. MMFs are developing but the small sizes mean MNCs run up against policy limits.

3) Dealing with Asia’s Rules and Regs. Two reps from Clifford Chance shared their insights on India and China.

Key Takeaway: Both countries have a multitude of governing bodies with sometimes overlapping jurisdictions. It’s important to understand their motivations and their powers.

4) Implementing eBAM in Asia. Jan Dewaele from SWIFT and Pole Yu from IT2 talked about the status of SWIFT-enabled solutions for eBAM.

Key Takeaway: Paperless account management (including for the account-opening process) is still a ways away, but some progress is being made.