BankingInsights NewsletterUncategorized
October 9, 2019

CECL to Reshape Credit Products

As new rules on how banks account for credit losses approach at the start of next year, corporate borrowers may want to start asking their lenders how their loans and other credits may be affected. The Financial Accounting Standards Board’s Current Expected Credit Loss (CECL) standard, which becomes effective Jan. 1, requires banks to recognize on day one the losses expected over the life of their credit products. Several banks, including JPMorgan Chase, Citigroup, Discover Bank and Synchrony Financial have…
ComplianceUncategorized
October 9, 2019

Treasury Taking on a Greater Role in Compliance Management

A surprising percentage of companies have no plan in place for monitoring and/or managing regulations, while more of that responsibility has shifted to the treasury function. In its 2019 Compliance Survey, Peachtree City, Ga.-based Strategic Treasurer found that one in three companies has no plan in place for monitoring and/or managing ever-increasing regulations. Among companies that do, the treasury function is increasingly taking on that role in some capacity—over half today, compared to just a third of companies in last…
Capital MarketsInsights NewsletterUncategorized
September 11, 2019

SocGen: You Have Less Floating-Rate Debt Than You Think

One big eye-opener for many attendees at NeuGroup’s Tech20 2019 first-half meeting was sponsor Societe Generale’s suggestion that their floating-rate debt capacity was higher than they (most likely) currently thought it was—provided they hedge their FX, that is. Why? Because, according to this view, the FX hedge program reduces one’s net floating-debt exposure. In addition, if you agree that a recession is coming, rates will be staying put or going lower, making floating debt even cheaper. It pays to favor…
NeuGroup News
August 14, 2019

Practicing Giving to Get

Responding to member feedback on committee service. My post last week on agenda planning and survey committees (APSCs) prompted a useful response from a member that I want to address. The post—in case you missed it—was about asking members to participate in committees comprised of a rotating subset of members for each meeting, with the goal of getting better input on what the group wants from peer group meetings. The member who responded, who might well be expressing what others…
Uncategorized
August 14, 2019

Balancing CFar and EaR in Order to Optimize FX Hedges

Bloomberg launches dynamic FX hedging model tested by Constellation. After a successful pilot with Constellation Brands, Bloomberg is offering a sophisticated approach to managing foreign-exchange (FX) risk. The new product measures the impact of currency fluctuations on cash flow and earnings and enables a more targeted FX hedging strategy. “This risk management strategy has dramatically changed the way we speak to executive leadership about risk,” said Sandy Dominach, senior vice president and treasurer at Constellation Brands. “We now have a…
NeuGroup News
August 1, 2019

New Name, Same Mission

By Ted Howard iTreasurer Is Now NeuGroup Insights With this issue, NeuGroup is bringing all of our content under a new banner— NeuGroup Insights. This better reflects all the distilled knowledge from all our groups, all our members, every exchange and the relevant solutions we learn about across our entire network. Today, NeuGroup facilitates more than 40 intensive, interactive peer group meetings annually, each dedicated to professional knowledge exchange, and a global network of 500 leading practitioners, now including CFOs,…
NeuGroup News
March 5, 2019

ITreasurer Turns 25

This week we celebrate a silver anniversary and look back at what’s changed. The first issue of International Treasurer was published on March 7, 1994. A quarter-century later, I wanted to take stock of how our flagship publication has changed. A new name. While treasurers of multinational corporations and those who assist them are still the main audience, we renamed International Treasurer as iTreasurer in 2014 to acknowledge our cohorts at US regional banks and other more domestic-focused companies. In…