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…
NeuGroup News
March 4, 2020

NeuGroup’s Response to the Coronavirus

Connecting with peers now is critical and may require options like video conferencing when in-person meetings aren't possible. Here is an announcement NeuGroup founder and CEO Joseph Neu sent to members this week outlining how the company is preparing to respond to the coronavirus: Dear Members, Like all of you, NeuGroup is closely following developments with the coronavirus outbreak. First and foremost, we hope that those who have contracted the virus return to good health and that all efforts to…
Capital MarketsLibor SOFR
March 3, 2020

Fed Official to NeuGroup Members: The Time to Start Paying Attention to Libor’s End Is Now

ARRC liaison David Bowman explains the implications of SOFR and what corporates need to do now.Corporate treasury teams that have paid little or no attention to the planned transition from Libor to SOFR, take note: That stance makes much less sense today than last year and “won’t make any sense” by the end of this year, in the view of David Bowman, the senior staff liaison from the Federal Reserve Board of Governors to the Alternative Reference Rates Committee (ARRC).…
Capital MarketsPension and BenefitsRisk Management
February 25, 2020

No Slam Dunk for Pension Fund Managers: Selling Leverage-Averse Boards on Overlays

The popularity of overlays is increasing in the US despite concerns of executive committees. Leverage is something of a dirty word in the world of pension funds and that, perhaps, presents the biggest challenge that pension fund managers face when seeking to persuade their companies’ executive committees to use overlays that use derivatives as a fund-management tool.At a roundtable of pension fund managers arranged by the NeuGroup, one participant said his team had begun to explore how to “de-risk” the…
NeuGroup News
February 25, 2020

NeuGroup for Pension and Benefits Launches in May

Following our successful roundtable last fall, we are moving ahead with a new peer group. The NeuGroup for Pension and Benefits is for corporate finance professionals who are willing to share and learn with others who think creatively and test some out-of-the-box ideas about managing assets to offset pension and other defined benefit liabilities. Trying times. With interest rates at historic low levels and concerns about them going lower and possibly even into negative territory, the risk management of defined…