NeuGroup News
October 13, 2019

Targeting Corporate FX Programs

Anne Friberg really ups the ante on activities with #neugroupfxmpg2. No axe to grind, but to toss. Content-wise it’s a tech transformation with advanced eFX platforms, policy and process, plus remaining pain points to overcome. Thanks to Bloomberg LP for your insight and support of knowledge exchange encouraging our members’ success. Mark Lewis, Alison Fletcher, Demetri Papacostas and team we appreciate your efforts. Robert Swartwood and team, Caroline Litchfield and all of Merck Treasury, our connection with you and your…
Insights NewsletterUncategorized
October 10, 2019

What’s Keeping Bank Treasurers Busy This Fall

Banks should get ready for “a relatively active fall” when it comes to capital and liquidity, as well as Basel rules, one expert said. Ben Weiner, a partner at law firm Sullivan & Cromwell, told members of NeuGroup’s bank treasurers group to be ready for lots of activity when it comes to managing capital and liquidity. New rules like accounting for current expected credit losses (CECL) have dominated the conversation but there are other areas that need to be considered: Trading book…
Insights NewsletterUncategorized
October 10, 2019

Treasurers Grapple with the Prospect of Negative Interest Rates in the US

The only thing that’s certain about interest rates is uncertainty and divided opinions. In Europe. Treasurers at a NeuGroup meeting sponsored by Unicredit last week heard a senior bank executive say he expects to see negative interest rates in Europe for the next two to three years. More than $17 trillion in debt now carries negative yields. This week, Unicredit’s CEO told a French TV channel that the bank is working on measures to transfer the European Central Bank’s negative rates “onto big companies…
October 9, 2019

Tassat Offers Less Volatile Method of Corporate Blockchain Payments

The hype about blockchain technology has subsided as financial institutions and their corporate clients have set to work on developing practical applications. Tassat Group, known as trueDigital until a recent rebranding, launched just such an application last December that is being used by New York-based Signature Bank’s customers, and soon a large investment bank may make the service available to its corporates. “We’re working with another top-tier investment bank on a use case similar to what we have with Signature,”…
Insights NewsletterUncategorized
October 3, 2019

Low Rates Deliver an Early Christmas

Corporates issuing debt at rock-bottom rates exult after reaping major savings. “Sometimes the market gives you a gift,” exclaimed one treasurer at a recent NeuGroup meeting while recapping highlights from the last few months. In this case, the gift came in the form of $300 million in net present value savings after the company took advantage of the late-summer swoon in interest rates. The company cashed in by calling—at par—30-year-bonds yielding 4.2% and replacing them with debt yielding 3.1%. And yes, the timing…
Insights NewsletterTreasury ManagementUncategorized
October 1, 2019

Strategic Finance Leaders to Overtake Career Treasurers in Talent Race

In the race toward the future of finance, should talent development programs be molding leaders for general finance, separate from specialist functions like treasury? Our talent-themed treasurers’ meeting last week at the University of Washington’s Foster School of Business revealed a deepening fault line between treasurers who are part of strategic finance leadership rotations and those who are career treasury.  It also showed that more rotational programs designed to foster talent and develop future finance leaders will include specialist (read:…
Insights NewsletterUncategorized
September 26, 2019

Can the Great Libor Migration Happen?

Trillions of US dollars need to start referencing SOFR, the Fed’s new overnight funding rate, very soon. Can the market handle it? Does it want to? Presentations at several NeuGroup meetings in the last few weeks have delved into those questions and the likely demise of Libor.  In just a few short years – possibly by the end of 2021 – the London Interbank Offered Rate, otherwise known as Libor, may cease to exist. This means that almost $200 trillion…
Insights NewsletterUncategorized
September 24, 2019

The Downside of Precision, the Hulk Inside Life Sciences and Thinking Cash, Cash, Cash

Three takeaways from 2019 H1 peer group meetings selected by NeuGroup founder Joseph Neu. Here are three insights that stood that stood out to me from our first half meetings: Sometimes precision works against you. Too much precision can muddle the early stages of assessing risk. When pursuing the first steps, risk professionals may want to look past their desire to employ precise information and start instead with ballpark estimates.  “As you get more precise, the culture of some companies or groups…
Insights NewsletterUncategorized
September 24, 2019

Different Views on the SOFR-Libor Waiting Game

“Never put off till tomorrow what may be done day after tomorrow just as well.”  That cheeky line from Mark Twain turns on its head conventional wisdom on taking action. It also might apply to how some treasury teams are approaching preparation for Libor’s demise. And there are other variations on the “what, me worry?” theme. One participant at a recent NeuGroup meeting of cash investment managers said, with a smile on her face, “We’re not worried about Libor; someone will figure it out.…
Capital MarketsInsights NewsletterUncategorized
September 19, 2019

Sustainability and Smart Investing: Why the Buzz About ESG Is Growing

Interest in ESG investing is blossoming as companies search for purpose beyond profits.  WHY: You can do good and do well. Academic research cited by DWS “provides strong evidence that environmental, social and governance factors positively influence corporate valuation and investment performance.” Also: “ESG data can potentially help mitigate against both idiosyncratic and systematic risks.“90% of ESG study results demonstrate that prudent sustainability practices have a “positive or neutral influence on investment performance.“Key takeaway: Think about ESG as another risk factor in your screening criteria which…