NeuGroup News
November 18, 2021

NeuGroup Employees Lighten the Load With Lunch & Learn

Here at NeuGroup, our employees spend a lot of time (a LOT of time) on Zoom calls, Microsoft Teams meetings and just old-fashioned phone calls. While we love to help our members share and learn together, we also like to connect behind the scenes. To give everyone a consistent break, keep the mood up and stay in touch outside of work tasks, once every two weeks our employees meet for Lunch & Learn, an hour long session where two employees…
Capital Markets
November 17, 2021

Cloning and Cleaving: The Successful Execution of a Complex Spin-off 

Capital markets insights from a NeuGroup member’s journey helping spinning off businesses intertwined within the parent.Not all spin-offs are created equal—a lesson brought home powerfully to one NeuGroup member who helped their company successfully navigate a large, complex, nearly two-year spin-off of three product groups that did not formerly exist as stand-alone businesses and were not managed as a group by the parent company. “These products were fully intertwined across every aspect of the business,” they said. So were the systems…
Capital AllocationCash & Working Capital
November 17, 2021

New Wrinkles to Iron Out in Capital Structure Analysis as Fed Resets

Five areas of focus for treasury teams embarking on new analysis of capital structure as the outlook for rates changes.Capital structure analysis has taken on added importance and complexity for corporate treasurers who piled on liquidity to survive the pandemic but are now “skeptical about keeping a large chunk of change around,” as one member put it at a recent meeting of NeuGroup for Large-Cap Treasurers. NeuGroup senior executive advisor Roger Heine, a former investment banker experienced in helping companies…
ESGRegionalTechnology
November 17, 2021

A Closer Look at China’s Approach to Tech Through an ‘S’ in ESG Lens

An expert on China shares how tech firms should prepare to navigate the Chinese government’s recent pivot.By Joseph NeuSome Western observers are quick to see a Chinese Communist Party crackdown on technology companies as a reaction to the rising power of tech giants. But you can also view it through a social lens that aligns with the equity and inclusion goals of many global corporations. Seen this way, it may be more of a China-specific approach to a global trend…
Capital MarketsESG
November 17, 2021

Weighing the Impact of Inflation and ESG on Tech Credit Ratings

Credit rating agencies sit down to weigh in on hot topics with Tech20 treasurers at the annual breakfast panel.Each year, members of NeuGroup for Tech Treasurers sit down with tech sector analysts from S&P, Fitch and Moody’s to discuss their pressing questions for the credit rating agencies. This year’s conversation revolved around the hot topics of inflation and ESG. One important takeaway: there’s not much for tech companies to worry about (yet). The chief lending officer at meeting sponsor BNY Mellon moderated…
FXTechnology
November 10, 2021

Training for Treasury’s Tech Future With Coding Boot Camps

Treasurers are moving to familiarize their teams with computer programming, some by enlisting members in coding boot camps.A growing number of treasurers are pushing their teams to learn computer programing skills as they seek to improve metrics like forecasting accuracy, gain access to more powerful processing and minimize their dependence on IT teams and third-party solutions. At a recent meeting of NeuGroup for Foreign Exchange 2, members discussed their approaches, from large-scale internal classes to sending team members to online…
BankingCapital Markets
November 10, 2021

Stars Aligned for Now on Bank Subordinated Debt, Preferred Stock

Morgan Stanley says regional banks should consider moving up offerings to this year given volatility risk. Regional and mid-cap banks are looking to raise capital, whether to refinance existing debt, buy back stock or support balance sheet growth, and the market is hot—at least for now, according to Morgan Stanley bankers presenting at a recent meeting of NeuGroup for Regional Bank Treasurers. But volatility in the aftermath of last week’s Fed meeting could prompt institutional investors to pull back.So banks considering…
Capital MarketsESG
November 10, 2021

Extra Credit: Energy Companies Issuing Debt from Green Subsidiaries

Bonds issued by energy company transition business units are preferred by debt investors who screen for green.Bonds issued by entities within energy companies that are focused on low- or no carbon emission projects and technology are far more likely to appeal to some asset managers than debt issued by the holding company. That takeaway emerged at a recent meeting of NeuGroup for Oil & Gas Treasury sponsored by Societe Generale during a session that featured two debt investors, one representing…
Risk ManagementTalking Shop
November 10, 2021

Talking Shop: Reporting Specific Risks to the Board

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: “Do any members report specific risks or risk categories to the board? For example—technological risk, cyber, system implementation, environmental or carbon, weather risks, etc.”Peer answer 1: “Yes, we just presented to our board this week and included the top five risks in our report. Of the five, I’d say two…
FXTechnology
November 3, 2021

Google’s Treasury Transformation Search Results: Teaming up With SAP

Google’s co-innovation of treasury solutions that work with SAP S/4HANA could benefit other corporates.Google’s frustrations with building its own customized treasury tools to enhance its ERP ultimately pushed the company to abandon that strategy. Today, it’s using standardized solutions it co-created with SAP that are now built into its cloud-based S/4HANA platform. Among the beneficiaries: other corporates that use S/4HANA that can make use of tools Google helped innovate. Over a two-year implementation of SAP that Google called Project Emerald,…