BankingTalking Shop
December 8, 2022

Talking Shop: Interest Rates for In-House Banks

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: “For those that use an in-house bank/cash center, can you share the interest rates you use on the excess funds loaned to the in-house bank? “Does the in-house bank/cash center pay the lending entity: “An overnight rate “A monthly interest rate “A rate that matches the rate on the investment made…
Technology
December 1, 2022

Mastering Your Data

Data accessibility and availability is at the core of all finance technology transformation. By Nilly Essaides Many finance organizations are fast-tracking automation initiatives, aiming to improve process efficiency and build new capabilities to support an increasingly strategic role. The pressure to reduce process cost and head count is intensifying alongside concerns about a global recession. “We are speeding up our digital transformation,” said a member of NeuGroup for Tech Treasurers at the annual meeting at Carmel Valley Ranch. “I just received my…
RegionalRisk ManagementTreasury Management
December 1, 2022

People, Prices, Places: Internal Auditors Question Hiring Trends

Internal audit hiring insights: India may be growing less attractive; recruiting talent from the Big Four has downsides. Top companies in North America have looked to India as a leading location for shared services centers and to potentially place at least some internal audit (IA) staff. They have also used the Big Four accounting firms essentially as a default source of new team members. Both of those trends may be wearing thin. One member of NeuGroup for Internal Audit Executives discussing his company’s rapid…
FXTalking Shop
December 1, 2022

Talking Shop: Acquisitions in a Foreign Currency

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: “How do you go about making international transactions for acquiring companies traded on an international market with shares in the local currency? “If, for example, the price is $50M USD but you have to purchase shares in GBP or EUR: “Would you do a big one-time trade ($50M USD to…
NeuGroup News
November 22, 2022

Stay in the Loop With Updates to NeuGroup’s Website & Community Platform 

Earlier this year, NeuGroup’s updated community page for members made it easier than ever to communicate with peers and see announcements from peer group leaders. Now, a personalized Events tab on the community page integrates the Events Calendar, creating a curated view of all your upcoming sessions and meetings. As you can see below, the streamlined view shows only the upcoming events to which you’re invited, in chronological order—all you have to do is register.  The sessions you can attend…
Accounting & DisclosureCash & Working Capital
November 17, 2022

FASB Has Issued New Disclosure Rules for Supply Chain Finance. What Do They Mean for Corporates?

The FASB’s disclosure rules will bring transparency to SCF programs but don’t require reclassification of trade payables. The world of supply chain finance (SCF) is facing a major change. Starting in 2023, corporations that extend payment terms with their suppliers and set up SCF programs so those vendors can be paid early by a bank or other third-party finance provider will have to disclose the terms and size of the SCF programs in financial statement footnotes. “It’s one of the…
TechnologyTreasury Management
November 17, 2022

Clarifying the Vision: A Treasury Priority Road Map Draws Acclaim

Splitting priorities into categories looking forward four years helps align treasury with finance and support business units. A picture of a treasury road map presented at a recent meeting of NeuGroup for Mega-Cap Assistant Treasurers was worth considerably more than a thousand words, drawing praise and insights from peers. To create it, the treasury team at the NeuGroup member company provided input about their priorities, helping create a vision and road map across four categories of goals: Operational excellence Global cash and…
Capital MarketsInvestment Management
November 17, 2022

Kicking the Tires: Investing Cash in Working Capital Finance

Supply chain finance offers attractive yields uncorrelated to other assets, but non-IG funds present an obstacle. The search for attractive yields uncorrelated with—and more resilient than—other fixed-income investments led the investment arm of a large, privately-held multinational corporation to a fund that invests globally across trade receivable, payable and inventory finance assets. Representatives from Koch Investments Group and Pemberton Asset Management, a specialist alternative credit manager, discussed the benefits of the working capital finance asset class at a recent NeuGroup session…
Cash & Working CapitalFP&AThe NeuGroup Insights Interview
November 10, 2022

Fresh Takes: Cash Flow, Spending Discipline, Profits and People

Timely insights on liquidity and how finance can add value to the business from Chris Ortega of Fresh FP&A. “Profits are a dream but cash is a reality.” That’s among the timely, on-target insights aimed at CFOs, treasurers and other finance executives in this episode of NeuGroup’s Strategic Finance Lab podcast, which you can hear by hitting the play button below or heading to Apple or Spotify. It’s delivered by Chris Ortega, the CEO of Fresh FP&A, a consultancy focused on finance…
BankingCash & Working CapitalTalking Shop
November 10, 2022

Talking Shop: How Much Liquidity Does Your Holding Company Maintain?

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: “We are a multibillion-dollar bank and have traditionally held cash and liquid securities to cover four quarters of holding company expenses, including opex, debt, preferred and common dividends. We set the upstream dividend from the bank to the holdco to maintain that level every quarter. “After many years of this practice,…