What corporates are saying about the Fed’s instant payment system and what it may mean for them.Blockchain proponents may be promising a bright future of limitless payments made in seconds, but traditional payments infrastructures are providing real-time alternatives today. Next month, the US Federal Reserve will launch FedNow, a payments system that enables USD payments of up to $500,000. The service will join the RTP network, a real-time payment platform owned by The Clearing House and launched in 2017, as an instant payments option.…
The benefits of one member’s journey to a center of excellence as it manages rapid growth in revenue and bank accounts. Across roughly a decade, one NeuGroup member company tripled its revenue, partly through heavy M&A activity. But the core, global corporate treasury team remained at about 40 people—loading some of them with extra work, very little of it being the strategic initiatives today’s modern finance orgs want to focus on. As acquisitions and bank accounts started to stack up, the…
A good risk management system requires a list of all exposures, according to CFO.University’s Steve Rosvold. The Silicon Valley Bank crisis raised concerns for many corporates around bank counterparty risk—but counterparty risk goes beyond just banks, as companies are also exposed to the actions of customers, vendors and investors. In order to effectively manage these risks, it is essential for a finance team to adopt a holistic approach that tracks all sources of exposure. That’s one takeaway from an upcoming…
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: The failures of Silicon Valley Bank, Signature Bank and Credit Suisse dramatically drove home the critical need of corporations to keep close tabs on the credit worthiness of their banking partners. In response to the crisis of confidence, some companies moved money out of smaller, regional institutions into large, global systemically important…
A tumultuous March has shaken confidence in crypto markets’ liquidity; major players like BNY Mellon are rebuilding trust.As the Fed addresses the ongoing crisis of confidence in the banking sector, the mostly unregulated cryptocurrency market is still reeling from the spillover effects of the collapse of Silicon Valley Bank and Signature Bank: both were active supporters of crypto market transactions. The closure of Signature and Silvergate Bank meant the elimination of Signet and Silvergate Exchange Network—two 24/7 digital payment networks used by most in…
SVB insights from NeuGroup founder Joseph Neu and senior executive advisors Paul Dalle Molle and Jerry Olivo. Financial crises like the failure of Silicon Valley Bank reveal the grit, dedication and skill of first-rate treasury and finance teams—and their ability to manage risk when battling forces they can’t control. Upheaval, volatility and uncertainty also test the mettle of NeuGroup, whose mission is to help members, sponsors and partners withstand the blows. Hours after regulators shut down SVB last Friday, the…
February 23, 2023
A Year of War, Sadness and Confronting Challenges Together
Finance teams come together to overcome obstacles amid sanctions, countersanctions and the exodus of banks from Russia. By Paul Dalle Molle, NeuGroup Senior Executive Advisor This week’s one-year anniversary of Russia’s invasion of Ukraine is a sad moment, knowing as we do that the war is raging on with no signs of ending. It also reminds us that the conflict really began in 2014 with Russia’s annexation of Crimea and the war in Donbas. It has been almost a decade of…
February 9, 2023
Talking Shop: Do You Pay All Joint Lead Arrangers of Revolvers?
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: “We have three joint leader arrangers (JLAs) for our revolving credit facility and the JLA that drives the revolver renewal gets paid more than the others. “There are some companies with a lot more than three JLAs. If we were to grow the top tier/JLA group, would the market standard be…
December 8, 2022
Talking Shop: Interest Rates for In-House Banks
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: “For those that use an in-house bank/cash center, can you share the interest rates you use on the excess funds loaned to the in-house bank? “Does the in-house bank/cash center pay the lending entity: “An overnight rate “A monthly interest rate “A rate that matches the rate on the investment made…
November 10, 2022
Talking Shop: How Much Liquidity Does Your Holding Company Maintain?
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: “We are a multibillion-dollar bank and have traditionally held cash and liquid securities to cover four quarters of holding company expenses, including opex, debt, preferred and common dividends. We set the upstream dividend from the bank to the holdco to maintain that level every quarter. “After many years of this practice,…