Category

Banking

BankingCapital Markets
January 5, 2021

Banks Craving Yield Hear Case for Lightly Structured Corporate Notes

An option for members of the Bank Treasurers’ Peer Group coping with excess liquidity amid rock-bottom rates.Many members of the Bank Treasurers’ Peer Group (BTPG) find themselves looking to their investment portfolios as they search for yield in a manner that complies with policy risk parameters—a theme heard at other NeuGroup meetings in the second half as interest rates fell. Banks face the added challenge of tepid loan growth amid a surge in deposits driven by a flight to safe…
Justin Jones
Love0
BankingESG
December 22, 2020

M&A Deals Reveal Growing Power of ESG Ratings, Research

In a recent NeuGroup Virtual Interactive Session, Deutsche Bank weighed in on the changing face of the players doling out ESG ratings which are increasingly important to investors and issuers. As the graphic below makes clear, credit rating agencies and other companies are racing to get in on the action through acquisitions. Trisha Taneja, Deutsche Bank’s head of ESG advisory, identified MSCI and Morningstar as two popular ratings providers, adding that Moody’s and S&P are growing. “The two current main…
Justin Jones
Love0
BankingCapital Markets
December 17, 2020

Wild Rides: Three Treasurers Rise to the 2020 Financing Challenge

Lessons from three companies whose equity, debt and bank credit transactions required flexibility, speed and more.The scramble for liquidity during the pandemic underscored the need for treasury to be prepared—at any point—to snap into action and access capital or credit. And while each company’s circumstances are different, there are some lessons that emerged from this year’s financings that should interest almost any treasury team. At a second-half meeting of NeuGroup’s Life Sciences Treasurers’ Peer Group, three members described funding transactions…
Justin Jones
Love0
BankingCapital MarketsTechnology
December 15, 2020

Is the Corporate Bond Market Ready for Digital Transformation?

Former NeuGroup members look to convince today’s treasurers that the current system needs to change. By Joseph Neu In the wake of a record year for corporate debt issuance—around $2 trillion in the US alone, generating estimated fees for banks topping $8 billion—this is a good time to assess if the corporate bond market needs transformation. As part of a new series of virtual interactive sessions on fintech solutions to perennial treasury and finance function challenges, NeuGroup hosted a session…
Justin Jones
Love0
BankingFXTalking Shop
December 15, 2020

Talking Shop: How Do You Restrict Trading for Currency and Bank Pairings?

Member question: “Question on restricting trading for certain currency/bank combinations: We have a few currencies that some banks have trouble settling with us (such as RUB). I want to avoid trading with these banks for those currencies. “Ideally, I could set up a rule in FXall to restrict specific bank/currency combinations. Does anyone have suggestions for doing this? Thanks!” Peer answer 1: “I believe that in FXall’s QuickTrade set-up, you can select/designate standard counterparty banks to populate for specific currencies…
Justin Jones
Love0
BankingCapital MarketsESG
December 10, 2020

Corporates Seek Best Practices in Backing Black-Owned Banks, Brokers

Selecting which minority-owned institutions to include on deals requires asking the right questions. Netflix, Apple, PayPal, Microsoft and other companies launched prominent initiatives to support Black-owned banks and brokerage firms this year in the wake of the social justice movement sparked by the death of George Floyd in May.   Scores of other corporates are making or doubling down on commitments to support financial institutions serving minority communities. They’re doing it through bank deposits, investments in community development financial institutions (CDFIs)…
Justin Jones
Love0
BankingTechnology
December 1, 2020

Corporates to Banks: Untangle Processes, Offer Simple Solutions

NeuGroup members want simple but powerful improvements to banking services.In a recent meeting of treasurers for high-growth companies, sponsored by Bank of the West BNP Paribas, representatives from the bank opened a session with a question: how can banks improve treasurers’ experience? While not directing their response to Bank of the West specifically but rather to banks generally, the answer, overwhelmingly, was clear: simplify the day-to-day experience. NeuGroup members outlined how banks can streamline basic authorization and documentation processes that…
Justin Jones
Love0
BankingFXTalking Shop
December 1, 2020

Talking Shop: Whom Do You Pay Using Your Offshore Renminbi Account?

Member question: “Has anyone opened a CNH (offshore renminbi) account? And if so, what do you use it for? Do you: a) pay onshore China vendors, b) offshore vendors?”Peer answer: “Yes, we have a CNH account in Singapore. We bill to our local distribution entities in local currency and we use the account for intercompany receivables before converting to USD. We make FX settlement payments from the account.” For more insights on trends in Asia from NeuGroup Members, read founder…
Justin Jones
Love0
BankingCapital Markets
November 19, 2020

Monetization Magic: How Using a Hybrid Solved an Asset Riddle

MUFG helps one mega-cap use structured preferred shares to monetize a “difficult” asset.In a session at the recent NeuGroup Tech20 annual meeting—the 20th annual no less—a guest speaker from a mega-cap communications company shared how his treasury found a great deal of success using structured preferred shares to monetize previously untapped assets on its balance sheet. All while managing its net debt within a target leverage ratio, with the assistance of meeting sponsor MUFG. Structured preferred shares are a type of…
Justin Jones
Love0
BankingLibor SOFR
November 17, 2020

Replacing Libor: No Criticism for Banks That Say ‘No Thanks’ to SOFR

Regulators say banks can price loans using any appropriate reference rate as they prepare for Libor’s end.You may possibly have missed a development that happened three days after the presidential election: US banking regulators gave banks more confidence they can decide to use Libor-replacement rates other than the secured overnight financing rate (SOFR), which the Federal Reserve has endorsed but that some regional banks view as problematic. “Examiners will not criticize banks solely for using a reference rate, including a…
Justin Jones
Love0

Connecting Every Finance Professional Who Wants To Share And Learn

Learn more

Knowledge Exchange

About

Need help?

©2024 - NeuGroup, Inc.

Privacy Policy