FXTechnology
September 24, 2020

Transforming Data Reporting and Analytics With a BI Tool

Qlik Sense has made one treasury risk manager’s team more efficient and nimble.A financial risk manager at a manufacturer with a decentralized global treasury told peers at a recent NeuGroup meeting that the self-service BI analytics platform Qlik Sense has transformed the company’s data reporting and analysis. A comprehensive report that used to take the member’s team several days to prepare can now be done in a matter of hours with Qlik Sense.“ impacts recommendations to leadership for currencies and…
Libor SOFRTechnology
September 24, 2020

Looking Beyond Libor: Engage Vendors, Expect Some Frustrations

Corporates preparing for a transition to SOFR may need to push some systems vendors.NeuGroup members appear to be making headway to transition floating-rate exposures to the secured overnight financing rate (SOFR) or an alternative Libor replacement. However, in a meeting in which two members detailed their preparations, a major concern arose about third-party vendors’ progress and the need to push them along.   Responding to polling questions during the meeting session, 70% said they have compared notes with peer companies about their…
BankingFX
September 24, 2020

Talking Shop: Methods for Pulling Cross Rates From Central Bank Published Rates

Question: How does your company pull cross rates that are required to be pulled from central banks’ published rates?  “Looking for some teams to benchmark on how you all pull the cross rates that are legally required to be pulled from central bank published rates. Pulling these rates from central banks’ websites is inefficient and we wanted to know how others are doing this.”  Peer Answer 1: “We use Bloomberg’s data license program to get the rates via a file and upload them automatically to our enterprise…
BankingCOVID-19
September 22, 2020

Reality Check: Banks Dial Back PPP Loan Forgiveness Expectations

Delays in applications and action by Congress will affect banks’ NIM and NII forecasts.Forget about forgiveness until early 2021. That, in a nutshell, was among the takeaways from a recent conversation between members of NeuGroup’s Bank Treasurers’ Peer Group. The forgiveness at issue is for loans that banks made under the federal government’s $669 billion Paycheck Protection Program (PPP), part of the CARES Act enacted to help small businesses struggling during the pandemic.The loans can be forgiven if companies used…
NeuGroup News
September 17, 2020

ICD Guides NeuGroup Members Assessing Risks and Rewards in Money Markets

Cash investment managers compare notes on money funds, deposits, risk and more in a virtual interactive session. Treasury investment managers attending a NeuGroup virtual interactive session (VIS) this week heard timely analysis from sponsor ICD about the ups and downs in money markets over the last six months as the pandemic took hold. They also got the valuable and prized chance to learn what moves other managers are making—or not making—as they weigh the risks and rewards of taking advantage…
Cash & Working CapitalInvestment ManagementRisk Management
September 17, 2020

Weighing Reward vs. Risk, Cash Investors Make Moves or Hunker Down

Some take advantage of opportunities to pick up yield; others play it safer and stick to government money funds.The Covid crisis has illuminated where corporate cash investors sit on the risk tolerance spectrum—a point underscored in a Virtual Interactive Session sponsored by ICD this week that gave some NeuGroup members a clearer picture of where they stand relative to their peers.Career risk vs. opportunity for yield. Hearing what some peers have done “reinforces how conservative we really are,” said one…
BankingCash & Working Capital
September 17, 2020

Talking Shop: The Philosophy of Fees on Revolving Credit Facilities

Question:  “Do you pay the same arrangement fee for a 364-day revolver renewal as for a 5-year renewal?” “We executed our first 364-day revolving credit facility last year (in addition to a five-year) and it is time to renew the 364-day facility. We only have 50% of the banks participating in the 364-day renewal. We were thinking to pay a proportionate amount of arrangement fees to the lead banks. I don’t think they have to do very much since we…
Capital MarketsESG
September 15, 2020

Friedman, Profits and Treasury’s Role in Stakeholder Capitalism

50 years after Milton Friedman’s landmark essay on profits, treasurers are trying to embrace stakeholder capitalism responsibly.By Joseph NeuMilton Friedman’s essay, “The Social Responsibility of Business Is to Increase Its Profits,” turned 50 this past Sunday. Many commentators are seeking to mark the occasion with efforts to either square stakeholder capitalism with Friedman’s view—helping stakeholders is good for long-term profitability—or call him out as myopic to the more equal, inclusive and sustainable future that young people—and others—now want. Milton Friedman…
BankingLibor SOFR
September 15, 2020

Excitement Borne of Frustration Greets Ameribor 30-day Term Rate

Bank treasurers facing Libor’s end welcome news on a forward rate from the AFX. Libor’s days are numbered and bank treasurers eager for the development of a forward-looking, term interest rate that has a credit component got some good news last week: The American Financial Exchange (AFX) announced an indicative 30-day forward rate called Ameribor30 whose base rate is overnight Ameribor, which reflects the unsecured borrowing costs of more than 1,100 American lenders.“I’m pretty excited about it,” one member of…
Accounting & DisclosureFX
September 15, 2020

Talking Shop: Disclosing Option Premium Expenses in Revenues

Context: In 2017, the FASB issued ASU 2017-12, which simplified and expanded the eligible hedging strategies for financial and nonfinancial risks. The update goes into effect for all corporates this year, and some NeuGroup Members recently collaborated to share their approach to updated guidance on disclosing option premium expenses in their revenues. Question: “Does anyone disclose option premium expense in their revenues due to ASU 2017-12?” “As a consequence of the revised accounting for hedge costs under ASU 2017-12, our company is reviewing our typical…