Capital MarketsCash & Working Capital
May 6, 2021

Moving Target: A Growing Company’s Capital Structure Matures

MUFG helps a high-growth tech company shift from convertibles to a financing mix more in line with an IG credit.The optimal capital structure for a high-growth technology company may change significantly as its business develops and its financing options increase—one reason corporates that issue convertible bonds early in their trajectory often replace them with alternatives more suited to mature businesses with investment-grade (IG) credit metrics or ratings. That takeaway sprang from a session at a recent meeting of NeuGroup for…
Cash & Working CapitalTechnology
May 6, 2021

In Search of a Cash Forecasting Model for Use Across the Enterprise

One corporate in search of simplicity opted for developing a solution in-house vs. using third-party vendors.An indispensable lesson from the pandemic is that revenues can drop unexpectedly and precipitously, and so cash forecasts must consider multiple scenarios and learn from the past. An assistant treasurer (AT) from a global industrial company explained at a recent NeuGroup meeting how his company is improving cash forecasting with machine learning and other new technologies. A precise forecast was not the goal, but rather…
Investment ManagementTreasury Management
May 6, 2021

Spreading the Word: Investment Reporting and Who Sees What When

The head of investments at a large company with a sizable portfolio describes reporting processes and paths.A member of one of NeuGroup’s two investment management groups who oversees a significant investment portfolio at a major tech company recently described to peers what reports he receives daily as well as what information is reported within the company and how often. The member receives approximately 15 reports daily by email, his preferred delivery method. The emails are sent to the team and…
Cash & Working CapitalRegionalTalking Shop
May 6, 2021

Talking Shop: Processing Fees for a Domestic Cash Pool in China

Editor’s note: NeuGroup’s online communities give members another forum to find answers to their questions. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: insights@neugroup.com. Member question: “Has anybody set up a China domestic cash pool? I would like to understand market practice on the bank’s processing fee for this. “ is charging us a 0.1% processing fee on the outstanding borrowed balance in the domestic cash pool. Can someone give me a benchmark for this?” Peer answer:…
NeuGroup News
May 3, 2021

NeuGroup Focus Groups Gain Traction with FinLync

To deliver the best experience for members and sponsors, NeuGroup is piloting focus groups with a series on FinLync. Tomorrow, NeuGroup will host the third of its invitation-only focus group sessions discussing FinLync, a fintech that provides provide total data integration via ERP-native apps that utilize the real-time power of APIs. These are the first-ever NeuGroup meetings with a focus group format, a new innovation that delivers the best experience to all members and sponsors. After initial meetings on April…
NeuGroup News
April 29, 2021

AsiaCFO Members to Meet Face-to-Face in Shanghai in May

Members of NeuGroup’s AsiaCFO peer group will gather in person in Shanghai on May 14, in a meeting led by Shirley Liu, a highly-respected member who recently retired as China CFO for The Coca-Cola Company. We can’t think of a better way to celebrate spring and get this group’s 2021 meeting season rolling!Robotics and automation will be the meeting’s main theme. Members will hear about the latest innovations from sponsor UiPath, which—in addition to riding the success of its recent…
Investment ManagementTechnology
April 29, 2021

What the Crypto Craze Means for Corporates Seeking Use Cases

Treasurers eye the value of Bitcoin and other digital assets as payment methods, investments and tech tools.The fast-paced, volatile and increasingly popular world of cryptocurrencies like Bitcoin and other digital assets is sparking interest, questions and a few concerns among finance and treasury professionals. Discussion at a recent NeuGroup meeting of assistant treasurers pointed up how some corporates are approaching the decision about what role, if any, digital assets should play in their futures.Other members are grappling with more granular…
ESGRisk Management
April 29, 2021

Shifting Winds of ESG Policies and Regs Have Risk Managers on Alert

The prospect of increased regulation and disclosure around corporate sustainability has risk managers preparing.The likelihood of increased regulation and mandatory disclosure of ESG-related activities and risks under the Biden administration and across the globe has enterprise risk managers trying to get their ESG ducks in a row. “From a risk management perspective, we audit all facts and figures in ESG reports we’re using internally,” said one member at a recent meeting of NeuGroup for Enterprise Risk Management. “The expectation is…
Capital MarketsD&I
April 29, 2021

Gaining Ground on the Road to Diversity in Capital Markets Deals

NeuGroup members discuss details of including firms owned by minorities and women in debt and other transactions.Talk about timing. Members of NeuGroup for Capital Markets discussed diversity and inclusion (D&I) in capital markets transactions on the same day 11 firms owned by women, minorities and veterans joined Deutsche Bank Securities in closing a $750 million bond underwriting for the bank. The role of the 11 firms—which received about 60% of the fees—underscores the momentum of the movement among banks and corporates to…
BankingRegionalTalking Shop
April 29, 2021

Talking Shop: Use a Non-Canadian Bank for Cash Management in Canada?

Editor’s note: NeuGroup brings members together to answer questions and help each other in a variety of forums, including online communities—one of many benefits of membership. Talking Shop shares valuable insights from these members-only exchanges, anonymously. Send us your responses: insights@neugroup.com. Member question: “Has anyone successfully used a non-Canadian bank for its primary cash management bank in Canada? If so, who? If not, why, and which Canadian bank are you using? “Our understanding is we need to have a Canadian bank,…