NeuGroup News
June 16, 2021

Neugroup Connects FP&A Heads in First-of-Its-Kind Meeting

In pilot meeting for our newest group, leaders of financial planning and analysis teams shared and learned in the NeuGroup Process.  Last week’s pilot meeting of NeuGroup for FP&A Heads was a first in two ways: in addition to being first meeting of the group, it was one of our first ever meetings with two sponsors, OneStream on the first day and Jedox for the second.   Though many NeuGroups focus on separate aspects of corporate treasury, NeuGroup for FP&A Heads joins those like our ERM and internal audit groups, expanding the reach of those who can benefit from the NeuGroup Process. NeuGroup’s Brian Kalish, one of the peer group leaders who led the meeting, described it as…
Capital MarketsCash & Working Capital
June 15, 2021

Convertibles, Speed and Capital Structure: A Tech Banker’s Take

An interview with Lucia Greenblatt, managing director of technology banking at MUFG, on a SAAS company’s financing journey. The optimal capital structure for a high-growth technology company may change significantly as its business develops and its financing options increase—one reason corporates that issue convertible bonds early in their trajectory often replace them with alternatives more suited to mature businesses with investment-grade (IG) credit metrics or ratings That takeaway sprang from a session at a recent meeting of NeuGroup for Growth-Tech…
NeuGroup News
June 14, 2021

A Special Panel for Healthcare Treasurers

In a recent session facilitated by NeuGroup for treasurers from the healthcare sector, Wells Fargo moderated a panel discussion on ‘ESG and the Role of Treasury’. On the panel were Michelle Edkins, a managing director at BlackRock, Kirby Brendsel, sustainability initiatives lead at Welltower and Scott Krohn, treasurer of Verizon. The panel was moderated by Genevieve Piche, head of ESG solutions at Wells Fargo, the meeting’s sponsor. While moderating the session, Ms. Piche was able to jump in and share…
COVID-19Treasury Management
June 10, 2021

Hard Work: Creating a Flexible Workplace Combining Office and Remote

Finance teams balancing worker desires and corporate needs favor hybrid models, but the details are a work in progress.Companies’ timelines for returning to the office vary widely, according to assistant treasurers at recent meeting of NeuGroup’s Assistant Treasurers’ Leadership Group. Some are scheduling returns imminently while others only tentatively plan to return next fall. There was consensus, however, that requiring everybody to come back all at once is probably no longer feasible. Still, remote work’s advantages are likely outweighed by…
ESGRisk Management
June 10, 2021

Want to Add Value? Get Creative

An internal auditor explains how he’s been able to not only provide assurance but also add value in other ways.Even before the onset of the pandemic, the scope of just about all corporate functions was widening. New regulations, new technology and new cultural trends (read: reputational potholes) all tended to have people doing more with less. That’s why creatively sharing the load can work best and where one function, internal audit, has found it can add extra value. This was…
Capital AllocationESG
June 10, 2021

Balancing Act for Energy Firms: ESG vs. Capital Returns, Discipline

More takeaways from a NeuGroup pilot meeting of oil and gas treasurers weighing the role of finance in energy transition strategies, conducted in partnership with Societe Generale.By Joseph NeuOur discussion with oil and gas treasurers validated that there is a strong belief that investors (and especially on the bond side) want capital discipline and not just a commitment to ESG initiatives. ESG mandates are sold as an indicator of strong returns, especially in the long run; so if companies underperform…
FXRegionalRisk Management
June 10, 2021

Rescue Mission: Saving Trapped Cash in Depreciating Currency Markets

For projects in volatile economies, creative thinking from treasury could be critical.Profit is not a profit until it’s back in the US. That reality for many multinationals formed the backdrop at a recent NeuGroup meeting for treasurers of large-cap companies where members shared their approaches on how to react when a country’s economic environment takes a problematic turn. Emerging market nations including Argentina, Turkey and Brazil dominated the conversation, as their currencies carry risk of intense devaluation, exacerbating regulatory rules that can trap…
RegionalTalking Shop
June 10, 2021

Talking Shop: Reducing Impact of Negative Interest Rates in Europe

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: insights@neugroup.com. Member Question: “What solutions are available to reduce the impact of negative interest rates in the eurozone? “Our bank there charges 1% on euro deposits. We have cash pooling, but converting to USD daily seems like a pain.” Peer answer 1: “Our global bank charges us 0.5% at the moment, but…
ESGRegional
June 3, 2021

Oil and Gas Treasurers Weigh Finance Roles in Transition Strategies

How much time do companies have? Takeaways from the first meeting of a NeuGroup focused on oil and gas treasury support of energy transition conducted in partnership with Societe Generale.By Joseph NeuLast week shook the oil and gas sector. Exxon Mobil saw two board seats go to directors backed by the energy transition activist hedge fund Engine No. 1 (yesterday, the company said a third seat will likely go to the fund), which convinced big asset managers to back its…
InsurancePension and Benefits
June 3, 2021

Bridge the Gap or Vive la Différence: Insurers vs. Pension Plans

Can corporate pension managers learn from how insurance companies invest their pension-related assets?So-called pension risk transfers (PRTs) allow corporates to negotiate with insurance companies to take on a pension plan’s liabilities and remove interest rate and longevity risk from the company’s balance sheet. In the US, PRT transactions totaled about $25 billion in 2020, with $14 billion of that coming in Q4, the highest quarterly volume since 2012.That context formed the backdrop for a recent meeting of NeuGroup for Pensions…