Risk ManagementTalking Shop
November 8, 2023

Talking Shop: Bloomberg Usage Fees for IBOR Fallback Rates

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]. Context: For some corporates, the transition from the London interbank offered rate (Libor) to risk-free reference rates—such as the Secured Overnight Financing Rate (SOFR)—included the decision to adopt so-called fallback language in existing derivative contracts covered by the International Swaps and Derivatives Association (ISDA). During the yearslong process, ISDA created the IBOR Fallbacks Supplement to…
November 2, 2023

Currency Headache in Argentina: Chilling Effects of FX Controls

A new regulation makes some blue-chip swaps, used to move trapped cash out of the country, less attractive. In the run-up to Argentina’s Oct. 22 general elections, the government body that regulates markets issued an official bulletin that has effectively limited outflows of Argentine pesos (ARS). In recent NeuGroup meetings, corporates and regional experts said the regulation increased the perceived legal risk of blue-chip swaps, a type of international asset trade where a multinational in Argentina typically uses local currency to buy sovereign…
TechnologyThe NeuGroup Insights Interview
November 2, 2023

A Chatham Financial Star Says Clients Are the Stars of the Show

Chatham managing partner Amol Dhargalkar describes his personal journey and his vision of the future of finance. This episode of NeuGroup’s Strategic Finance Lab podcast stars Amol Dhargalkar, the managing partner, board chairman and global head of the corporates sector at Chatham Financial—the risk advisory firm where he has spent more than two decades, his entire working career. You can hear his interview with NeuGroup founder and CEO Joseph Neu now on Apple and Spotify. Chatham helps corporations develop strategies to hedge their exposures to foreign exchange, interest rates…
FXTalking Shop
November 2, 2023

Talking Shop: The Pros and Cons for FX of More Frequent Netting

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]. Context: The gross magnitude of inter- and intracompany payables and receivables at multinational companies has made intercompany netting processes essential for efficient global cash operations. With proper setup, an effective netting program will reduce foreign exchange and payment costs, simplify transaction and reconciliation processes and optimize cash concentration. Similarly, the practice of centralizing the buying…
TechnologyThe NeuGroup Insights Interview
October 25, 2023

Making Strategic Finance Decisions Built on Data and Integration

Chatham Financial’s Amol Dhargalkar sees forward-looking treasury teams driving a future of data analysis woven into strategic decisions. In a NeuGroup Insights video you can watch by hitting the play button below, Chatham Financial managing partner and board chairman Amol Dhargalkar shares with NeuGroup founder and CEO Joseph Neu a vision of the future for treasury and financial risk management built on data and integration. He gives two real-life examples that make his points concrete, clear and compelling. Mr. Dhargalkar foresees advanced technology allowing finance teams…
Cash & Working CapitalTechnology
October 25, 2023

Liquidity and Capital Structure Top Treasury’s 2024 Priorities

NeuGroup’s Treasury and Finance Agenda Survey also shows more emphasis and urgency on digital transformation. The biggest risk facing companies next year is an economic downturn, according to preliminary results of NeuGroup’s 2024 Treasury and Finance Agenda Survey. At the same time, 57% of respondents predict interest rates will remain high or even go higher. The result is that treasury teams placed liquidity and capital structure optimization at the top of their objectives for the coming year (see ranking below).…
Capital Markets
October 25, 2023

Mixed Signals: Do Recent Unicorn IPOs Mean the Window Is Open?

Recent IPOs of unicorns ended a nearly two-year drought, but CFOs and market participants don’t expect a flood—yet. The September IPOs of Arm Holdings, Klaviyo and Instacart ended a long drought of debut stock offerings from so-called unicorns—privately held startup companies that have reached a valuation of $1 billion or more. NeuGroup for Growth Company CFOs brought together chief financial officers of other fast-growing firms, including some unicorns, to discuss whether the recent crop of IPOs means corporates that have been standing by for the…
Capital MarketsInvestment Management
October 19, 2023

Reverse Repo: A Safe Haven for Cash Amid Financial Turbulence

Attractive yields and safety are two reasons some corporates are investing directly in reverse repos. Turmoil in the banking sector earlier this year sent shockwaves through corporate treasuries, triggering widespread reviews of credit risk policies and changes in how cash investment managers think about counterparty limits for unsecured exposure to banks. As these managers continue to seek both safety and healthy yields, reverse repurchase agreements, also known as reverse repos, are drawing increased attention globally. And no wonder: they offer corporates an additional layer…
Cash & Working CapitalTalking Shop
October 19, 2023

Talking Shop: Cleaning Up a Messy Short-Term Cash Forecast

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]. Context: Cash forecasting is a perennial challenge for both treasury and FP&A teams, but the two functions tend to approach the problem from different perspectives. Treasury, responsible for short-term liquidity and cash management, depends more on bottom-up, direct forecasts. FP&A, concerned with planning and budgeting for the longer term, typically uses a top-down,…
TechnologyTreasury Management
October 11, 2023

Up the Learning Curve: How Coca-Cola Is Implementing ChatGPT

Coca-Cola’s internal model of ChatGPT has numerous use cases for treasury team members who learn to use the AI tool. Coca-Cola is one of several NeuGroup member companies that have partnered with OpenAI to create an internal version (also known as an instance or model) of ChatGPT that runs entirely on servers owned by the corporate. Within Coca-Cola treasury, senior director of emerging capabilities Rui (Ree) Yang is spearheading the effort to put the artificial intelligence tool to work by guiding employees to find…