Cyber riskTechnology
October 15, 2020

Taking A Second Look: Corporates Reconsider Cryptocurrencies

Members share their curiosity about embracing cryptocurrency amid more regulation.Efforts by central banks and finance ministers to block the widespread use of digital currencies until strong regulation is in place—along with the emergence of new types of currencies—are leading some corporates to reconsider earlier decisions to avoid accepting cryptocurrencies as payment. That is among the takeaways from a discussion at a recent meeting of NeuGroup for Retail Treasury, sponsored by U.S. Bank, during which one member said her company, encouraged…
BankingCapital MarketsESG
October 15, 2020

A Virgin Bond Deal, Community Investment and Frustration With Banks

Takeaways from the Tech20 High-Growth Treasurers’ Peer Group 2020 H2 meeting, sponsored by Bank of the West / BNP Paribas. By Joseph NeuWanted: A better bank user experience. The user interface (UI) and user experience (UX) is a key success driver for high-growth technology companies. So when their banks fail to deliver a quality UI/UX, growth tech treasurers get frustrated. Work from home, of course, has made what used to be digital nice-to-haves into must-haves. Electronic bank account management (eBAM) promises…
Capital AllocationCash & Working Capital
October 13, 2020

The Cup Runneth Over: Corporates Awash in Cash Mull Options

Treasurers discuss concerns about companies rushing to deploy cash too quickly.When uncertainty abounded at the start of the pandemic, companies drew down revolvers, issued debt, cut capital expenditures (capex), halted share repurchases—whatever it took to conserve cash for the troubling times ahead.  A few months later, after massive government stimulus and a recovering economy, many are awash in cash and trying to figure out what to do with it—or not do with it.At a recent NeuGroup meeting for large-cap companies,…
Capital MarketsInvestment Management
October 13, 2020

Hunting Yield: Investment Managers Weigh TIPS, Munis, Credit Risk

Treasury investment managers weigh options for finding returns in a low-rate environment.Treasury investment managers looking to boost returns in the current low interest-rate environment discussed a range of options at a recent NeuGroup meeting sponsored by Morgan Stanley, including Treasury inflation-protected securities (TIPS) and municipal bonds.  “We’re looking for alternative investment ideas to get attractive yield,” one member said. Her company is looking to return to investing overseas cash in low volatility net asset value (LVNAV) money market funds, an…
Accounting & DisclosureRisk ManagementTalking Shop
October 13, 2020

Talking Shop: How Well Does Quantum Manage Interest Rate Swap Accounting?

Member question: “For those who use Quantum as their TMS, do you also leverage Quantum for hedge accounting, and if you do, does Quantum (in your opinion) manage interest rate swap accounting well? “We have been using Reval for a while, but just wanted to know if people have been able to leverage Quantum V6+ for hedge accounting, including interest rate swaps.” Peer answer 1: “When we put our interest rate forward starting swaps in place a few years back, Quantum…
NeuGroup News
October 9, 2020

NeuGroup Debuts a Group for High Achievers and a Middle East Business & Treasury Roundtable

A pilot meeting for NeuGroup for High Potentials takes flight and a roundtable for professionals in the Middle East kicks off. NeuGroup this week held two first-of-their kind meetings: A Middle East Business & Treasury Roundtable sponsored by Standard Chartered, and a meeting of NeuGroup for High Potentials, which brought together high-potential employees identified by NeuGroup member companies. The Middle East and beyond. A dynamic virtual meeting offered Standard Chartered’s clients in the Middle East and members of NeuGroup in…
FXTechnology
October 8, 2020

Taking the Right Steps on the Road to Robotic Process Automation

A risk manager warns that RPA should not be used a Band-aid.One NeuGroup member recently described to peers the benefits and challenges of using robotic process automation (RPA) and robotic desktop automation (RDA), a form of RPA that requires humans to trigger an action performed by a bot. The member adopted automation to document trades his team previously input manually into its treasury management system (TMS), a time-consuming task that also introduces the possibility of human error. The new process, using software from UiPath, has…
BankingCapital MarketsCOVID-19
October 8, 2020

Why Some Bankers May Root for a Democratic Sweep

Founder’s takeaways from the Bank Treasurers’ Peer Group’s first fall meeting. By Joseph NeuMembers of the BTPG have been meeting in the spring for 16 years running, and debuted their Fall Edition meeting this week, sponsored by Morgan Stanley. Here are a few takeaways I want to share. Banks have enough capital. The expectation is that US banks will pass the next two stress tests, even with with Covid-19 inspired stress scenarios, indicating everyone is well capitalized. This will free up buybacks and…
COVID-19TechnologyTreasury Management
October 8, 2020

Tonic for Zoom Fatigue: Shorter Meetings—and a Day Without Them

NeuGroup Members discussed their approaches to making WFH situations more palatable.“Six hours on Zoom is like 10 hours in the office,” one treasurer of a mega-cap company said during a recent NeuGroup meeting (yes, a Zoom meeting), quantifying a feeling about the side effects of virtual meetings. Almost everyone who has been working from home for seven months knows what she means. At the same meeting, another treasurer said he is encouraging his team “not to book 30-minute calls, to…
Cash & Working CapitalCOVID-19Risk Management
October 8, 2020

Retailers Assess Capital Structure Amid Signs of Rebound

As the economy revives, companies pay down revolvers, resume buybacks and assess counterparty risk. At a recent NeuGroup meeting of treasurers at retailers, sponsored by U.S. Bank, members discussed stock repurchase programs, paying down revolvers and monitoring the impact of capital structure changes on leverage ratios and credit ratings. Members discussed moving from preparing for worst case scenarios in April and May (by increasing liquidity, initiating new revolvers) to more recent moves made in anticipation of returning to more normal operations.…