Capital MarketsCash & Working CapitalCOVID-19
March 26, 2020

Beyond Revolvers: What NeuGroup Members are Talking About Now

More of Joseph Neu’s takeaways from virtual meetings dominated by talk of cash and liquidity. The waterfall of insights cascading from NeuGroup’s virtual meetings this month requires expert judgment on wringing out and distilling what matters most. One expert is NeuGroup founder and CEO Joseph Neu, who on Tuesday offered his take on tapping credit lines. Here are some of his other takeaways: Converts as an option. Industrial companies said they are looking at the convertible debt market as a financing…
Capital MarketsCOVID-19
March 24, 2020

Bonds in the Time of COVID-19: Timing Is Everything

Treasury teams need to be prepared to pounce as investor sentiment shifts wildly in capital markets. Be prepared so you can be nimble. That’s the advice from a treasurer whose company pounced when investor sentiment in the investment grade corporate bond market allowed nine corporates to issue $25 billion in debt on one day this month before the window slammed shut again amid COVID-19 fear. “You have to take what the market gives you and respond to the environment around…
BankingCapital MarketsCOVID-19
March 24, 2020

Little or No Pushback Has Corporates Drawing on Credit Lines—At What Cost?

Founder’s Edition by Joseph Neu Insights on the reasons to tap revolvers and what the trend may mean for banks and treasury. One clear insight emerging during our first several NeuGroup virtual meetings as the COVID-19 crisis escalates is that corporates are taking a slew of steps to bolster their liquidity positions. Among the most notable: All but the most stellar credits are drawing on revolving credit facilities (RCFs), a move that has potentially profound implications for banks. As Reuters…
NeuGroup News
March 23, 2020

NeuGroup: A First Responder for Treasury and Finance Leaders

Covid-19 crisis sharing and learning continues to ramp up in response to member needs. Since March 10, when we converted our FX Managers’ Peer Group Summit (sponsored by Chatham Financial) to a Zoom meeting, NeuGroup has conducted eight virtual meetings on Zoom—some pre-planned and others scheduled in response to the severe nature of the COVID-19 crisis—with members of these groups: FX Managers’ Peer Groups 1 & 2Women in NeuGroup Treasurers’ Group of Mega-CapsLife Sciences Treasurers’ Peer GroupTreasurers’ Group of ThirtyTech20…
BankingCapital MarketsCOVID-19Treasury Management
March 19, 2020

Communication Is Key When Drawing on a Revolver

Get buy-in from internal and external stakeholders as you guard against a COVID-19 liquidity crunch. Every day seems to bring news of another multinational corporation drawing down some or all of a revolving credit facility to weather potential liquidity disruptions created by market reaction to the coronavirus outbreak. News reports say private equity firms like Blackstone are encouraging portfolio companies to tap credit lines. The companies recently tapping revolvers include Kraft Heinz, L Brands and Carnival. NeuGroup Insights reached out…
Senior ExecutiveTreasury Management
March 19, 2020

Using Mentoring Circles to Cultivate Organic Sponsorship for Women

Mentoring circles can help women find sponsors who can advocate for their career advancement. Three women who are senior finance executives at a major multinational corporation described how their company organically builds sponsorship using so-called mentoring circles to support the development needs of high-potential talent. The three spoke this week at a Women in NeuGroup virtual meeting. One of the women described mentoring circles as groups of 10 to 20 people led by more senior employees to discuss topics of…
Capital MarketsLibor SOFR
March 12, 2020

It’s Time for Nonfinancial Corporates to Gear Up Libor-SOFR Transition Plans

Founder’s Edition, by Joseph Neu NeuGroup member calls with corporate treasury leaders reveal preparation gaps. Some NeuGroup corporate members—nonfinancial institutions—are well on track with planning to transition off Libor before the end of 2021. One company, Ford Motor, has even joined the Alternative Reference Rates Committee (ARRC), a group of private-sector participants convened by the Federal Reserve Board and the New York Fed to help identify alternatives to Libor and develop strategies to promote their use.  However, the majority of…
COVID-19FXRisk Management
March 12, 2020

FX Hedging Opportunities Amid Virus Volatility

Opportunistic FX managers are locking in favorable exchange rates to hedge exposures as markets gyrate. NeuGroup members have locked in favorable foreign exchange rates in the wake of volatility sparked by the coronavirus outbreak, plunging oil prices and speculation about more US interest rate cuts by the Federal Reserve. “We’re taking advantage; this is something of an opportunity to layer in hedges,” said one risk manager during a NeuGroup’s Virtual FX Summit sponsored by Chatham Financial. Amol Dhargalkar, a managing…
Senior ExecutiveTreasury Management
March 10, 2020

Org Charts and Beyond: How Leaders Help Prepare Teams for Change

Many treasurers want to give team members the skills to move to other areas or companies. NeuGroup members at a recent Treasurers’ Group of Thirty meeting delved into the nuances of treasury department organizational structures and how they meet specific company needs. Participants enjoyed seeing on a screen exactly how other treasury teams have been put together and why. And they had a laugh when one person didn’t recognize his own org chart. But many members clearly feel the weight…
COVID-19Risk Management
March 6, 2020

Internal Auditors Snapping into Action to Help Companies Cope with Coronavirus Crisis

The outbreak points up the need to create or improve pandemic policies and formalize rules. The coronavirus outbreak is revealing how prepared multinational corporations are for threats posed by crises that can affect almost every area of a business. And that’s made the virus a top concern and focus of many members of NeuGroup’s Internal Auditors’ Peer Group (IAPG) who are playing a key role in the response. Proactive approach. “I am now devoting more than 50% of my time…