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Justin Jones

Capital Markets
October 25, 2023

Mixed Signals: Do Recent Unicorn IPOs Mean the Window Is Open?

Recent IPOs of unicorns ended a nearly two-year drought, but CFOs and market participants don’t expect a flood—yet. The September IPOs of Arm Holdings, Klaviyo and Instacart ended a long drought of debut stock offerings from so-called unicorns—privately held startup companies that have reached a valuation of $1 billion or more. NeuGroup for Growth Company CFOs brought together chief financial officers of other fast-growing firms, including some unicorns, to discuss whether the recent crop of IPOs means corporates that have been standing by for the…
Justin Jones
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Capital MarketsInvestment Management
October 19, 2023

Reverse Repo: A Safe Haven for Cash Amid Financial Turbulence

Attractive yields and safety are two reasons some corporates are investing directly in reverse repos. Turmoil in the banking sector earlier this year sent shockwaves through corporate treasuries, triggering widespread reviews of credit risk policies and changes in how cash investment managers think about counterparty limits for unsecured exposure to banks. As these managers continue to seek both safety and healthy yields, reverse repurchase agreements, also known as reverse repos, are drawing increased attention globally. And no wonder: they offer corporates an additional layer…
Justin Jones
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Cash & Working CapitalTalking Shop
October 19, 2023

Talking Shop: Cleaning Up a Messy Short-Term Cash Forecast

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]. Context: Cash forecasting is a perennial challenge for both treasury and FP&A teams, but the two functions tend to approach the problem from different perspectives. Treasury, responsible for short-term liquidity and cash management, depends more on bottom-up, direct forecasts. FP&A, concerned with planning and budgeting for the longer term, typically uses a top-down,…
Justin Jones
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TechnologyTreasury Management
October 11, 2023

Up the Learning Curve: How Coca-Cola Is Implementing ChatGPT

Coca-Cola’s internal model of ChatGPT has numerous use cases for treasury team members who learn to use the AI tool. Coca-Cola is one of several NeuGroup member companies that have partnered with OpenAI to create an internal version (also known as an instance or model) of ChatGPT that runs entirely on servers owned by the corporate. Within Coca-Cola treasury, senior director of emerging capabilities Rui (Ree) Yang is spearheading the effort to put the artificial intelligence tool to work by guiding employees to find…
Justin Jones
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FXTechnology
October 11, 2023

Why FX Algos May Belong in a Risk Manager’s Trading Toolbox

Some NeuGroup members are using algos to reduce trading costs and take advantage of aggregated liquidity in the FX spot market. FX algos offer corporate risk managers a well-established technology tool that can, ideally, lower trading costs while increasing speed and efficiency without moving the market when the need to trade falls outside the window of optimal liquidity in the forex market. Algos allow managers to define specific trading rules based on timing, price or quantity to determine trade execution…
Justin Jones
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BankingRisk Management
October 5, 2023

Creating a Plan B for Bank Failure

SVB’s failure has pushed the conversation about backup cash management banks to the forefront for more companies. Shifting business to a new cash management bank is a huge ordeal for corporate treasury teams, but concern about bank creditworthiness, triggered by the collapse of Silicon Valley Bank (SVB), is leading more treasuries to explore what’s required and how to set up a backup solution. Thirty-nine percent of respondents to NeuGroup’s Best Practices in Assessing Bank Counterparty Credit Risk Survey reported they are considering…
Justin Jones
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BankingRisk ManagementTalking Shop
October 5, 2023

Talking Shop: Account Verification Solutions for Payments Fraud

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]. Context: Payments fraud remains a significant threat to corporates—although some research shows it declined in 2022. The 2023 AFP Payments Fraud and Control Survey reported that 65% of organizations surveyed were victims of reported or actual payments fraud last year. That’s down from 71% in 2021 and the lowest percentage of fraud activity since 2014,…
Justin Jones
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Cash & Working CapitalFXTechnology
September 27, 2023

Machine Learning Wizardry: Analytics-Based Cash-Type Forecasting

Data science “wizards” and clean, treasury-tagged cash transaction data are transforming cash forecasting at one corporate. Transaction tagging, data science “wizards,” statistical models and machine learning (ML) are the current cornerstones of an ambitious, yearslong project by treasury at one NeuGroup member company to transform cash forecasting—which now includes grouping cash transactions by type. The FX leader and a member of his team shared details of the project, some of its successes and what they have learned along the way…
Justin Jones
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ComplianceRisk Management
September 27, 2023

Getting Ahead of the Curve: ERM’s Reputational Risk Rethink

The case for ERM practitioners to view reputational risk less as an impact of other risks and more as a risk itself. The power of social media to damage corporate reputations in the blink of an eye is just one factor leading a growing number of enterprise risk managers to take a more proactive stance toward heading off reputational risks rather than reacting to them after the fact. This marks a shift in perspective by some ERM practitioners who have…
Justin Jones
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Capital MarketsRisk Management
September 21, 2023

Corporates May Need to Add Sugar to Recipe for Bonds Funding M&A

Investors may demand better terms in special mandatory redemption clauses amid longer deal review times and rate cut risk. Treasury teams structuring bond deals to fund M&A transactions who want to lock in rates before an acquisition closes may need to sweeten the terms of a clause in bond offerings called a special mandatory redemption. The key reason: increased risks for investors stemming from longer regulatory reviews of mergers and the possibility that deals fall apart. SMRs typically require an issuer…
Justin Jones
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