NeuGroup News
November 22, 2022

Stay in the Loop With Updates to NeuGroup’s Website & Community Platform 

Earlier this year, NeuGroup’s updated community page for members made it easier than ever to communicate with peers and see announcements from peer group leaders. Now, a personalized Events tab on the community page integrates the Events Calendar, creating a curated view of all your upcoming sessions and meetings. As you can see below, the streamlined view shows only the upcoming events to which you’re invited, in chronological order—all you have to do is register.  The sessions you can attend…
Accounting & DisclosureCash & Working Capital
November 17, 2022

FASB Has Issued New Disclosure Rules for Supply Chain Finance. What Do They Mean for Corporates?

The FASB’s disclosure rules will bring transparency to SCF programs but don’t require reclassification of trade payables. The world of supply chain finance (SCF) is facing a major change. Starting in 2023, corporations that extend payment terms with their suppliers and set up SCF programs so those vendors can be paid early by a bank or other third-party finance provider will have to disclose the terms and size of the SCF programs in financial statement footnotes. “It’s one of the…
TechnologyTreasury Management
November 17, 2022

Clarifying the Vision: A Treasury Priority Road Map Draws Acclaim

Splitting priorities into categories looking forward four years helps align treasury with finance and support business units. A picture of a treasury road map presented at a recent meeting of NeuGroup for Mega-Cap Assistant Treasurers was worth considerably more than a thousand words, drawing praise and insights from peers. To create it, the treasury team at the NeuGroup member company provided input about their priorities, helping create a vision and road map across four categories of goals: Operational excellence Global cash and…
Capital MarketsInvestment Management
November 17, 2022

Kicking the Tires: Investing Cash in Working Capital Finance

Supply chain finance offers attractive yields uncorrelated to other assets, but non-IG funds present an obstacle. The search for attractive yields uncorrelated with—and more resilient than—other fixed-income investments led the investment arm of a large, privately-held multinational corporation to a fund that invests globally across trade receivable, payable and inventory finance assets. Representatives from Koch Investments Group and Pemberton Asset Management, a specialist alternative credit manager, discussed the benefits of the working capital finance asset class at a recent NeuGroup session…
Uncategorized
November 14, 2022

Test

Mr. Hausherr—chair of the Global Supply Chain Finance Forum—said the FASB’s disclosure rules are not a reason corporate buyers should feel they have to shut down programs. “From the outset the industry was involved and gave its recommendations. We explained to the accounting bodies what we actually do and provided specific standards they could refer to,” he said. “What we are talking about now is not an accounting debate, it’s a reporting discussion. There may be an indirect impact on…
Cash & Working CapitalFP&AThe NeuGroup Insights Interview
November 10, 2022

Fresh Takes: Cash Flow, Spending Discipline, Profits and People

Timely insights on liquidity and how finance can add value to the business from Chris Ortega of Fresh FP&A. “Profits are a dream but cash is a reality.” That’s among the timely, on-target insights aimed at CFOs, treasurers and other finance executives in this episode of NeuGroup’s Strategic Finance Lab podcast, which you can hear by hitting the play button below or heading to Apple or Spotify. It’s delivered by Chris Ortega, the CEO of Fresh FP&A, a consultancy focused on finance…
BankingCash & Working CapitalTalking Shop
November 10, 2022

Talking Shop: How Much Liquidity Does Your Holding Company Maintain?

Editor’s note: NeuGroup’s online communities provide members a forum to pose questions and give answers. Talking Shop shares valuable insights from these exchanges, anonymously. Send us your responses: [email protected] Member question: “We are a multibillion-dollar bank and have traditionally held cash and liquid securities to cover four quarters of holding company expenses, including opex, debt, preferred and common dividends. We set the upstream dividend from the bank to the holdco to maintain that level every quarter. “After many years of this practice,…
FXTechnology
November 7, 2022

The Science of FX Exposure Management

FX volatility and economic uncertainty are putting pressure on treasury to optimize risk management programs and provide management and the business with insight and foresight on how currency moves can impact revenue and the P&L. FX risk managers are under the microscope. “For the last six months, there’s been more intense attention on what my team is doing than for the past five years,” said a member of NeuGroup for Foreign Exchange. He is not alone. The US dollar’s ascent,…
BankingCash & Working CapitalRegional
November 3, 2022

Sending More Cash Out of China Using Pools in Free Trade Zones

Unpacking a member’s cash pool in China in a free trade zone where window guidance put no limit on cash outflows. Many NeuGroup member companies face a challenge getting cash out of China—in part because of rules limiting outflows from cash pools set up under a so-called nationwide scheme to 50% of the net equity held by a company’s entities in the country. But not all multinationals have this problem. At a recent session of NeuGroup for Global Cash and Banking, one member…
BankingTechnology
November 3, 2022

Sizing Up APIs: the Right Piece to Solve a Treasury Data Puzzle?

APIs offer flexible connectivity between systems, but widespread adoption by treasury faces several obstacles. Treasury organizations are hungry for data, but visibility into it is hampered by a fractured system environment and lack of standardization, both within finance and with external partners. Short of implementing a single ERP with built-in modules, finding a way to access enterprise information on a real-time basis has been difficult for often resource-starved treasury organizations. A new bridge for data. While complete system consolidation is not…