March 3, 2022

Russia Sanctions and Counter-sanctions: Treasury Prepares for the Unknown

NeuGroup’s Feb. 28 emergency session on the implications of Russian bank sanctions helped treasurers share challenges and learn from others’ real-time responses.The crisis in Europe has the potential to wreak havoc on global payments systems, and the stakes are high. Many multinational companies have Russian operations and relationships with local banks (for payroll at least) that may be on the sanctions list. These corporates are therefore sitting on potentially trapped cash. Others own stakes in Russian companies; we saw BP…
February 3, 2022

Opening Doors: Giving D&I Brokerage Firms More Meaningful Roles

More corporates are expanding the parts played by diversity firms beyond sharing deal economics with bigger banks.Corporates committed to the long-term success of brokerage firms that are owned and run by Black and Hispanic people as well as women and veterans are going to greater lengths to give these so-called diversity firms not only fees, but more meaningful roles in capital markets transactions. That key takeaway emerged at a late January meeting of the NeuGroup for Diversity and Inclusion working…
February 3, 2022

Russia Sanctions Strategy: Corporates Prepare for Disruptions

Members at a special NeuGroup session discuss banks, dividends, SWIFT payments and more amid Russia-Ukraine tensions.Cross-border payments with SWIFT, relationships with local and foreign banks and repatriating funds are among the key focal points of corporate treasury teams planning for possible US and EU sanctions if Russia attacks Ukraine. That takeaway surfaced Wednesday at a NeuGroup session on contingency planning attended by more than 80 members—a packed virtual house that shows the significance of the situation for corporates with business…
January 19, 2022

Eye-Opening: A Tech Treasurer Embraces APIs To See Cash in Real Time

A growing tech company connects with FinLync as it juggles cash, debt and a need to improve visibility.Real-time cash management made possible by wider adoption of APIs by banks has provided one tech treasurer the daily visibility into the company’s bank account balances that he craved for years. “This has become more important to us not just since Covid, but since tax reform in 2017 when we were sitting on a couple billion dollars offshore, like most tech companies,” he told peers…
BankingCapital Allocation
January 19, 2022

Spreading Capital Like Peanut Butter: One Bank’s Allocation Method

An understandable and flexible approach supported by top executives brought business leaders on board.Extensive analysis showed a large regional bank’s share price is highly correlated to consistent return on equity (ROE) performance, prompting its treasury team to set about developing a process to ensure the appropriate ‘E’ was assigned to business units. The treasurer described the bank’s “hybrid” capital allocation approach to peers in a recent meeting. Three “guiding principles” to developing the approach were making sure the aggregated allocated…
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…
BankingTreasury Management
October 21, 2021

Rough Road: Overcoming Post-Merger Integration Hurdles and Headaches

Insights and lessons from two ATs who confronted challenges including culture and tight deadlines. Low interest rates and plenty of cash on their balance sheets suggest large multinational companies will continue growing through M&A, challenging even experienced assistant treasurers (ATs) who tend to handle many finance-related integration issues. Two ATs of companies at the tail end of mergers each recounted at a recent meeting the long list of projects they faced to integrate elements of the merging businesses, including treasury management…
BankingTalking ShopTechnology
October 21, 2021

Talking Shop: Using APIs or Host-to-Host for Bank Connectivity

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: “Does anyone use host-to-host or API for bank connectivity? We are exploring those solutions and would be great to have your input.”Peer answer 1: “We use APIs for bank connectivity, from giving payment instruction to monitoring payment status to getting real-time balance and transaction details.”Peer answer 2: “We do not…
October 18, 2021

Teaming Up with Tech Firms: Deutsche Bank’s Multifaceted Approach to Cash Management Solutions

Deutsche Bank veteran Suman Chaki explains a strategy of developing bank-agnostic solutions with tech partners like TIS while continuing to invest in proprietary tools to solve problems faced by corporate clients. Deutsche Bank managing director Suman Chaki has an impressive and extensive record of advising corporate clients and helping them solve a variety of cash management challenges. So it’s no surprise that his insights and perspective on what treasury teams at multinational corporations want and need from banks, and how…
October 18, 2021

Treasury’s Need for an ESG Filter to Keep the Focus Where It Belongs

Tech treasurers in Asia discuss ESG priorities with Goldman Sachs Asset Management. Members of NeuGroup for Asia Tech Treasurers heard insights on treasury’s growing role in the accelerating efforts of corporates to promote sustainability through environmental, social and governance (ESG) initiatives at a recent meeting sponsored by Goldman Sachs Asset Management (GSAM). Among the key takeaways: Figuring out what matters and what doesn’t to investors and other stakeholders diving into the ESG pool is critical for treasurers facing pressure to innovate and manage…