Capital MarketsD&IInvestment Management
February 2, 2023

Reaching Out: Treasury Leads Engagement With Diverse-owned Firms

NeuGroup research reveals treasury is the primary driver of greater engagement with minority-owned banks, brokers and asset managers.  As chief procurer of financial services, treasury is at the epicenter of a complex ecosystem of financial partners, from banks to brokers to pension and cash investment managers. According to NeuGroup’s D&I Financing and Asset Management Survey, treasury is not only seeking greater engagement with minority-owned firms but is the driving force behind companies’ efforts to build more expansive financial relationships with these…
Capital MarketsTechnologyThe NeuGroup Insights Interview
February 2, 2023

Tech in the Spotlight: The Outlook for Financing Growth in 2023

Capital markets insights from Bank of the West Head of Technology Banking Andreas Bubenzer-Paim. If you only read the headlines, you might think that every technology company in the world is cutting jobs. But Andreas Bubenzer-Paim, Managing Director and Head of Technology Banking at Bank of the West, knows that layoffs by giants like Alphabet, Microsoft, IBM and other mega-caps are only part of a tech sector landscape which includes thousands of smaller, high-growth tech firms—many still private—that are actively hiring, not…
Capital MarketsLibor SOFR
January 26, 2023

Time Crunch Facing High-yield Loans Without Fallback Language

As Libor cession approaches, borrowers that have yet to seek refis or amendments may face higher execution costs. Libor will cease to exist on June 30, yet many borrowers in the high-yield loan market have yet to amend or refinance their loans to address the need to switch to a different reference rate. Syndicated loans with the Alternative Reference Rates Committee’s recommended replacement (or “hardwired fallback”) language will be automatically converted to the Secured Overnight Financing Rate (SOFR) on June…
Capital MarketsTalking Shop
January 19, 2023

Talking Shop: Determining the Interest Rate on Intercompany Loans

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: “I am exploring whether doing a ‘mini-credit assessment’ (similar to Moody’s model) is a meaningful exercise and a value-add change to our current policy, which is to treat all subsidiaries as created equal for the purposes of determining our credit rating for intercompany loan borrowing rates (i.e., a few notches below…
Capital MarketsCryptoTreasury Management
December 15, 2022

Posts, Podcasts and Video: The Best NeuGroup Content of 2022

A curated collection of favorite NeuGroup Insights posts, videos and Strategic Finance Lab podcasts. The NeuGroup Insights newsletter this week flashes back on some of our best content of 2022. That includes popular and topical articles—some based on proprietary NeuGroup Peer Research survey data—as well as videos and—new this year—podcasts (the Strategic Finance Lab, available on Apple and Spotify). To read the full email, please click here. The selections reflect the range of immediate challenges finance organizations faced in 2022—including tight labor markets, rising…
Capital MarketsInvestment Management
December 8, 2022

Cash Investment Managers Watch and Wait for the Fog to Clear

Many NeuGroup members are shortening duration and some are avoiding maturities beyond six months. “This is the most uncertain time I’ve ever seen,” said a representative of Allspring Global Investments at the fall meeting of NeuGroup for Cash Investment 2, aptly capturing the sentiment of many members. Uncertainty and a sense that interest rates will keep rising despite fears of recession are among the reasons many of them are keeping average portfolio duration short amid the extreme inversion of the yield curve.…
Capital MarketsInvestment Management
November 17, 2022

Kicking the Tires: Investing Cash in Working Capital Finance

Supply chain finance offers attractive yields uncorrelated to other assets, but non-IG funds present an obstacle. The search for attractive yields uncorrelated with—and more resilient than—other fixed-income investments led the investment arm of a large, privately-held multinational corporation to a fund that invests globally across trade receivable, payable and inventory finance assets. Representatives from Koch Investments Group and Pemberton Asset Management, a specialist alternative credit manager, discussed the benefits of the working capital finance asset class at a recent NeuGroup session…
Capital Markets
October 27, 2022

Overexposed to Fixed-Rate Debt, Not Ready to Swap to Floating

Inflation and uncertainty about interest rates leave many corporates waiting to add more floating-rate exposure. Discussions and polling about fixed- to floating-rate debt ratios among corporate issuers at a recent meeting of NeuGroup for Capital Markets sponsored by Deutsche Bank made clear two key points: The overwhelming majority of companies are overly exposed to fixed-rate debt relative to what they consider ideal and what historical data suggests will reduce interest rate expense over the long-term.Volatile financial markets and uncertainty about inflation and…
Capital MarketsRisk Management
October 13, 2022

Debt Issuers, Don’t Doubt the Fed’s Resolve to Fight Inflation

Insights from Chatham Financial about pre-issuance hedging and tail risk. Companies that anticipate issuing debt should not underestimate the Federal Reserve’s resolve to fight inflation, Chatham Financial executives told members of NeuGroup for Mega-Cap Assistant Treasurers at a recent meeting sponsored by the risk management advisory and technology firm. In light of the Fed’s determination to get inflation back to 2%, Amol Dhargalkar, Chatham’s managing partner and chairman, raised several issues for treasuries to consider as they lay the groundwork for debt…
Capital MarketsD&I
September 8, 2022

Supporting Diversity Firms: Verizon, Morgan Stanley, Wellington

Influential issuers, banks and investors are pushing to give diversity brokerage firms more meaningful opportunities: NeuGroup’s Strategic Finance Lab podcast, episode 7.In a Strategic Finance Lab podcast you can hear by heading to Apple or Spotify or by hitting the play button at the bottom of this page, NeuGroup founder and CEO Joseph Neu leads a panel discussion on the roles corporate debt issuers, investment banks and investors can play in providing more meaningful economics and opportunity to banks and brokerage firms owned by Black people, Hispanics, women and members…