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Capital Markets

BankingCapital MarketsESG
October 15, 2020

A Virgin Bond Deal, Community Investment and Frustration With Banks

Takeaways from the Tech20 High-Growth Treasurers’ Peer Group 2020 H2 meeting, sponsored by Bank of the West / BNP Paribas. By Joseph NeuWanted: A better bank user experience. The user interface (UI) and user experience (UX) is a key success driver for high-growth technology companies. So when their banks fail to deliver a quality UI/UX, growth tech treasurers get frustrated. Work from home, of course, has made what used to be digital nice-to-haves into must-haves. Electronic bank account management (eBAM) promises…
Justin Jones
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Capital MarketsInvestment Management
October 13, 2020

Hunting Yield: Investment Managers Weigh TIPS, Munis, Credit Risk

Treasury investment managers weigh options for finding returns in a low-rate environment.Treasury investment managers looking to boost returns in the current low interest-rate environment discussed a range of options at a recent NeuGroup meeting sponsored by Morgan Stanley, including Treasury inflation-protected securities (TIPS) and municipal bonds.  “We’re looking for alternative investment ideas to get attractive yield,” one member said. Her company is looking to return to investing overseas cash in low volatility net asset value (LVNAV) money market funds, an…
Justin Jones
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BankingCapital MarketsCOVID-19
October 8, 2020

Why Some Bankers May Root for a Democratic Sweep

Founder’s takeaways from the Bank Treasurers’ Peer Group’s first fall meeting. By Joseph NeuMembers of the BTPG have been meeting in the spring for 16 years running, and debuted their Fall Edition meeting this week, sponsored by Morgan Stanley. Here are a few takeaways I want to share. Banks have enough capital. The expectation is that US banks will pass the next two stress tests, even with with Covid-19 inspired stress scenarios, indicating everyone is well capitalized. This will free up buybacks and…
Justin Jones
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BankingCapital MarketsESG
October 6, 2020

A Green Bond Deal With Environmental and Social Benefits

Founder’s takeaways from the Treasurers’ Group of Mega-Caps 2020 H2 meeting. By Joseph Neu A green bond that moves the needle on E&S. One member shared insight from his company’s recent green bond offering that included a pair of African-American-owned investment banking firms among the four lead underwriters.   Not only is this member company breaking new ground with its second green bond, leveraging the experience and reporting infrastructure established with the first, but it is paving the way for further diversity firm involvement in this important issuance segment by…
Justin Jones
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BankingCapital MarketsTalking Shop
September 29, 2020

Talking Shop: Taking the Temperature of Today’s Credit Facilities Market

Member question: “Is anyone extending their credit facilities in this current market? Specifically, facilities with tenors of 3 or 5 years.”Peer answer 1: “In early Sept., we closed the renewal of a 364-day facility. Given the large size of our overall facility, planning and lender discussion start months ahead of the renewal. At the time we kicked that project off, markets weren’t supportive of longer-dated renewals (none had occurred for jumbo facilities like ours). Good luck with your renewal!”Peer answer…
Justin Jones
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BankingCapital Markets
September 29, 2020

The Revolving Credit Dance: Banks Step Out Cautiously

Bank capital challenges and economic recovery are calling the tune on revolver tenors, pricing.The bank loan market is back in action, but even strong, investment-grade (IG) companies may want to step lightly since lenders still face challenges.  Bankers explained in a recent NeuGroup meeting that during the onset of the pandemic, banks’ internal credit ratings for clients often fell further than public rating agencies’, requiring lenders to set aside more capital and potentially shore it up by raising equity or…
Justin Jones
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Capital MarketsCOVID-19Treasury Management
September 29, 2020

Busting Talent Silos and Reading the Signs on Hong Kong

Highlights from the Assistant Treasurers’ Group of Thirty 2020 H2 meeting sponsored by HSBC.By Joseph NeuTalent development is focused on silo busting. There are two silos in focus for AT members at the moment. The first is the diversity of hires, especially Black and Hispanic professionals along with women, into finance roles.  There is also a mandate to make this a long-term effort to build up the capacities and pool of potential candidates for corporate finance roles. The other silo…
Justin Jones
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Capital MarketsESG
September 15, 2020

Friedman, Profits and Treasury’s Role in Stakeholder Capitalism

50 years after Milton Friedman’s landmark essay on profits, treasurers are trying to embrace stakeholder capitalism responsibly.By Joseph NeuMilton Friedman’s essay, “The Social Responsibility of Business Is to Increase Its Profits,” turned 50 this past Sunday. Many commentators are seeking to mark the occasion with efforts to either square stakeholder capitalism with Friedman’s view—helping stakeholders is good for long-term profitability—or call him out as myopic to the more equal, inclusive and sustainable future that young people—and others—now want. Milton Friedman…
Justin Jones
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Capital MarketsCOVID-19Pension and Benefits
August 27, 2020

Wild Ride: Pension Fund Managers Describe a Rebalancing Roller Coaster Amid Pandemic

NeuGroup members discuss successes, disappointments and potential changes to strategy. Huge market swings, limited liquidity and high trading costs have tested the ability of corporate pension fund managers to rebalance portfolios during the pandemic. These challenging conditions have demonstrated the importance of speed and agility to make investment changes in times of crisis, and have forced some managers to take a hard look at asset classes and external managers. These and other insights emerged during a recent NeuGroup Virtual Interactive…
Justin Jones
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BankingCapital MarketsInvestment Management
August 27, 2020

Ripple Effects: Will Institutional MMFs Start Waiving Fees to Stay Above Water?

Rock-bottom rates have pushed retail money funds to waive fees, and institutional funds may be next.The Wall Street Journal this week gave prominent play to a story headlined “Money Funds Waive Charges to Keep Yields From Falling Below Zero.” That piqued our interest. Money market funds (MMFs) are a staple of many treasury investment managers and an important product for many of the banks that help corporates manage short-term cash.MMF yields have plummeted. Seven-day net yields for the average money…
Justin Jones
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