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Justin Jones

FXSenior Executive
September 20, 2022

Answering the CFO’s Call

A soaring dollar is threatening earnings; get ready for more CFO questions. The dollar’s ascent is causing a lot of heartburn for CFOs and boards. A stronger greenback reduces the value of FX-denominated income. For many US companies, foreign income comprises a large chunk of total revenue; thus, the hit to earnings can be substantial. In recent NeuGroup peer group sessions, the topic of containing the impact of a stronger dollar on financial results has been prevalent and reached far…
Justin Jones
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FXPension and Benefits
September 15, 2022

Avoiding a P&L Punch Packed by Nonqualified Deferred Comp Plans

Methods for hedging NQDC liability gains to avoid the pain of being hit by financial statement surprises. Nonqualified deferred compensation (NQDC) plans allow companies to offer executives the opportunity to defer taxes and earn market-based, notional returns on the deferred amounts while the company gets access to additional capital. That’s all good. The complication is that executives usually choose from a menu of market-based “notional” investments whose gains directly affect compensation expense and the P&L unless they are hedged. Depending…
Justin Jones
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BankingTechnology
September 15, 2022

The Need for Speed: How APIs Simplify Bank Connectivity

Real-time bank connectivity is the future—but NeuGroup members have yet to embrace APIs. In a recent NeuGroup member survey, 64% of respondents said they currently do or plan to have real-time connectivity to bank data, but only 16% said they’re currently using bank APIs—one critical key to real-time data. This is likely due to the overwhelming number of APIs that different banks use, and a lack of standardization. As you can see in the chart below, 29% of members that…
Justin Jones
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FXTalking Shop
September 15, 2022

Talking Shop, FX Edition: EUR Forwards; Hedging Depreciation

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 1: “Going out to one year for EUR, what size tranches are you trading for EUR forwards? Could I trade $10 million-$20 million? $20 million-$30 million? Peer answer 1: “The one-year EUR forward is pretty liquid, but to keep the spread narrow, we typically keep our size under USD 30 million equivalent…
Justin Jones
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Capital MarketsD&I
September 8, 2022

Supporting Diversity Firms: Verizon, Morgan Stanley, Wellington

Influential issuers, banks and investors are pushing to give diversity brokerage firms more meaningful opportunities: NeuGroup’s Strategic Finance Lab podcast, episode 7.In a Strategic Finance Lab podcast you can hear by heading to Apple or Spotify or by hitting the play button at the bottom of this page, NeuGroup founder and CEO Joseph Neu leads a panel discussion on the roles corporate debt issuers, investment banks and investors can play in providing more meaningful economics and opportunity to banks and brokerage firms owned by Black people, Hispanics, women and members…
Justin Jones
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Cash & Working Capital
September 8, 2022

Getting Religion: Treasury Spreads Reverence of Free Cash Flow

Rigorous control over free cash flow gives treasury a seat at the strategy table. By working to shorten the cash conversion cycle and making free cash flow a key metric of success, treasury at one NeuGroup member company gained credibility, responsibility and authority as a strategic partner within the enterprise. Its experience offers a road map for other corporates where treasury aims to augment its role in working capital management. Companies that succeed in this effort will better weather economic…
Justin Jones
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Capital MarketsD&I
September 7, 2022

Opening Doors: Keys to Using Diversity Firms in Bond Deals

Takeaways from a D&I working group session sponsored by Fitch Ratings featuring Loop Capital. At a recent meeting of NeuGroup for Diversity and Inclusion sponsored by Fitch Ratings, Sidney Dillard, partner and head of corporate investment banking at Loop Capital Markets, moderated a discussion featuring the experience of a corporate treasurer whose company made Loop Capital a joint active bookrunner on a large bond offering in 2021. Loop’s involvement in the deal is an example of providing more meaningful opportunities…
Justin Jones
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Technology
August 26, 2022

Bloomberg Terminal Inflation: ~9% Price Hike on Jan. 1, 2023

Terminal subscriptions will rise $195 per month, Bloomberg tells clients, citing global inflation. In a move that will affect many corporations and their banks, Bloomberg is raising the cost of subscriptions to its financial data Terminal by about 9%, citing rising expenses for labor, materials and “escalating competition for talent,” according to a letter from the company to clients dated Aug. 25.   The increase will bring the total cost to $2,500 a month or $30,000 a year for a…
Justin Jones
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CryptoPension and Benefits
August 25, 2022

Window Pain? Looking at the Risks of 401(k) Brokerage Windows

New DOL guidance on cryptocurrency investment options raises broader fiduciary questions for some plan sponsors. Guidance from the Department of Labor about offering cryptocurrency investment options in 401(k) plans, including through self-directed brokerage windows, sparked discussion about the pros and cons of the windows and the fiduciary duty of corporates at a recent meeting of NeuGroup for Pensions and Benefits. The DOL guidance issued March 10 warned plan fiduciaries to “exercise extreme care before they consider adding a cryptocurrency option” to a 401(k).…
Justin Jones
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InsuranceRegionalRisk Management
August 25, 2022

When To Buy Political Risk Insurance—and When It’s Too Late

WTW’s Laura Burns discusses policies that insure losses caused by geopolitical crises not covered by traditional insurance.Companies including McDonalds and ExxonMobil have reported billions in losses from shutting down business and other events related to Russia’s war in Ukraine. Some of that financial pain may have been avoided if corporates had purchased political risk insurance long before the crisis started, according to Laura Burns, who heads the political risk practice for WTW, formerly known as Willis Towers Watson. In a video you can watch…
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