BankingDiversity & Inclusion
March 30, 2021

Beyond Deposits: An FDIC Fund Aims to Boost Equity Capital at MDIs, CDFIs

Mission-Driven Bank Fund will offer corporates a way to infuse equity capital in banks serving minority communities. Corporations looking to make impactful investments in minority communities, but not through bank deposits, may want to consider a new partner: the Federal Deposit Insurance Corporation (FDIC)—the federal agency that insures deposits. Representatives from the FDIC and a large asset manager that is acting in an advisory role described what’s being called the Mission-Driven Bank Fund (MDBF) at a recent meeting of NeuGroup’s…
NeuGroup News
March 26, 2021

A Year Into WFH, a Look Back at Neugroup’s Virtual Transition

NeuGroup staff pulled off a difficult feat last spring to continue connecting finance professionals in a crucial period. When the Covid-19 pandemic first swept across the globe late last winter, everyone felt the impact. As a company based almost entirely on in-person interaction at that point, NeuGroup may have been among the hardest hit. “None of us had ever used Zoom before, we didn’t even have it downloaded,” said Clelia Milan, NeuGroup’s senior event manager, who helped assist the overall…
March 25, 2021

A Push in the Right Direction to Simplify Bank Fee Analysis

As bank fee statements slowly standardize, corporates and banks can work together to make the analysis process simpler.Analyzing bank fees to uncover outliers remains a thorn in the side of treasury teams—in no small part because the banks code their fees and transmit the files to corporates in many different ways. And while standardization is improving, companies should keep the pressure on banks to bring more clarity to the opaque world of bank fees. That was among the takeaways at…
BankingRisk ManagementTechnology
March 25, 2021

A Goldman Risk Management Tool Flying Under the Radar

FX risk managers talk up a Goldman Sachs solution called Capital Markets Atlas to measure value at risk.To no one’s surprise, a recent meeting of NeuGroup FX risk managers included plenty of talk about well-known vendors of exposure identification solutions like FireApps and AtlasFX, FX trading platforms including FxAll and 360T, and a variety of ERPs and TMSs. But not everyone in the large virtual room had heard of a self-service tool from Goldman Sachs that some members are using…
Pension and BenefitsRisk Management
March 25, 2021

Spring and Derisking in the Air for Defined Benefit Pension Plans

A strong stock market and higher interest rates plus regulatory relief bring smiles to some DB plan managers.An upbeat mood befitting the beginning of spring prevailed at this week’s meeting of NeuGroup for Pensions and Benefits. With the yield on the 10-year US Treasury note rebounding to pre-Covid levels and equities trading in the vicinity of all-time highs, a summer of full funding is within sight for many plans. Below are takeaways distilled by NeuGroup executive advisor Roger Heine, who helped…
Cash & Working CapitalRisk ManagementTalking Shop
March 25, 2021

Talking Shop: How Do You Use Counterparty Exposure Information?

Member question: “Does your organization review counterparty exposure? If so, how do you use this information? “What exposure types do you include? Cash, bank products, derivative contracts, other?“I understand that there are some organizations that set limits to how much exposure can be outstanding per counterparty. Does anyone have this practice in place?” Peer answer 1: “I monitor this frequently and have limits tied to my overall assets. Here are some items we look at for our liquidity providers: JurisdictionRegulatory environment…
NeuGroup News
March 24, 2021

Chatham Financial Breaks Down Hedging Programs With NeuGroup for High Potentials

At a NeuGroup session, Chatham Financial discusses with members the differences—and advantages—of FX and commodity risk hedging.  Last Friday, NeuGroup for High Potentials held another great interim meeting in which sponsor Chatham Financial provided education and sparked a discussion on important FX and commodities topics.  There was great feedback from attendees and continued positive response to our HiPo group, which continues to thrive. Chatham Financial joined to share actionable strategies employed by a wide range of corporates looking to maximize the impact of their hedging programs, utilizing data-driven…
BankingFXRisk Management
March 23, 2021

A Risk Manager Leveraging Flexibility to Benefit from Volatility

FX meeting sponsor Standard Chartered: Hedge policy flexibility may decide if volatility is treasury’s friend or foe.Volatility in foreign exchange, commodity and other markets sparked by the pandemic presented risk managers with challenges to their hedging programs. And while some corporates ended up with financial pain, others turned the volatility to their advantage. At a recent meeting of NeuGroup for Foreign Exchange sponsored by Standard Chartered, a representative of the bank used the positive experience of one member to underscore…
FXRisk ManagementTechnology
March 18, 2021

Racing to Change Horses: A Risk Manager’s Quick Switch to AtlasFX

An FX risk manager changed exposure ID systems and implemented the new solution in just three months.Changing horses in midstream is never easy, but sometimes it’s the right move. One FX risk manager who did it explained to members of NeuGroup for Foreign Exchange the benefits of jumping off his existing exposure identification system and hopping onto AtlasFX—in an extremely compressed timeline of three months.   The time and effort spent making the switch under pressure paid off big-time. “We…
Capital AllocationInsurance
March 18, 2021

Where Captives Fit in the Insurance Puzzle Corporates Want to Solve

Captives offer tax advantages and flexibility, but treasury teams must make sure trapping cash in them is worth the benefits.Rising insurance costs are putting more focus on captives, a solution that offers tax advantages, flexibility and lower costs than traditional insurance. For those reasons and others, several members at a recent meeting of NeuGroup for Retail Treasury said they plan to expand their captives to cover more risk.Other members say captives are not a good use of capital for their…